WBJ #38 2012

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SPECIAL INVESTING IN POLAND SNEAK PEEK • Voivodship analyses and contact details • City analyses and contact details • Special economic zones

12-17

WWW.WBJ.PL

A look inside this year’s edition of WBJ ’s popular guide for investors, including:

VOLUME 18, NUMBER 38 • SEPTEMBER 24-30, 2012 . z∏.12.50 (VAT 8% included) . ISSN 1233 7889 INDEX-RUCH-332-127

LOKALE IMMOBILIA

Prescription SHUTTERSTOCK

REAL ESTATE

• Penta eyes Poland • Senator opens • Tri-city offices

19-21

Since 1994 . Poland’s only business weekly in English

The problems with the government’s Reimbursement Act still haven’t been resolved. The consequences for patients and businesses are disastrous 10-11

Plus

for disaster

• Poland-India investment • Onet deal goes through • The Vistula’s treasures • Cyprus’ EU presidency • Deadly bootlegging • Interchange fees • Polish cricket

In this issue News . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2-4 Business . . . . . . . . . . . . . . . . . . . . . . . . . .4-5 Interview . . . . . . . . . . . . . . . . . . . . . . . . .8-9 Cover Story . . . . . . . . . . . . . . . . . . . . .10-11 Investing in Poland Sneak Peek . .12-17 Finance & Economics . . . . . . . . . . . . . . .18 Lokale Immobilia . . . . . . . . . . . . . . .19-21 The List . . . . . . . . . . . . . . . . . . . . . . . . . . . .22 Markets . . . . . . . . . . . . . . . . . . . . . . . . . . .24 Sports . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25 Lifestyle . . . . . . . . . . . . . . . . . . . . . . . . . . .26 Last Word . . . . . . . . . . . . . . . . . . . . . . . . .27

TOCK TERS SHUT

Banking on compromise Balcerowicz speaks Could a deal be reached to give Poland some say in the EU’s proposed banking union? 3

Poland’s most famous economist rails against calls for lower interest rates 18


NEWS

www.wbj.pl

500,000 sqm is the total surface area of solar panels installed on Polish roofs, the equivalent amount it would take to cover 70 soccer stadiums the size of Warsaw’s National Stadium.

48th

The future of Poland’s eastern neighbor, Ukraine, is now in focus after Polish President Bronis∏aw Komorowski visited the country and warned that its European aspirations depended on the transparency of the October 28 parliamentary election and the fate of jailed opposition leader Yulia Tymoshenko. “Poland has consistently and constantly expressed the position that carrying out fair elections in Ukraine, regardless of their outcome, should open the way for further steps towards the goal of signing and ratifying the association agreement between the EU and Ukraine,” Mr Komorowski told reporters after his meeting with Ukrainian President Viktor Yanukovych. Speaking in Warsaw while President Komorowski was in Kiev, Polish Foreign Minister

The court agreed with the Ukrainian government’s claim that the deal had led to exorbitant prices for the country’s gas supplies from Russia. Brussels claims Ms Tymoshenko’s conviction was politically motivated, while President Yanukovych maintains that she was tried by an independent court. EU-Ukraine negotiations have since stalled, although Mr Yanukovych has said he expects work on an Association Agreement to resume after the October 28 vote. While in Kiev, Mr Komorowski said Ukraine must decide whether it wants to align itself with the EU or join a Russian-led customs union. “It is impossible to implement those two scenarios at the same time. A choice has to be made,” he said. Remi Adekoya

275% is how much the value of agricultural land in Poland increased between 2004 and mid-2012.

Quote of the Week “If the RPP isn’t capable of controlling the situation with inflation, then it should dissolve itself.” Leszek Balcerowicz, former National Bank of Poland head and economist, regarded as the chief architect of Poland’s economic transformation, speaking out against an expected interest-rate cut by Poland’s Monetary Policy Council (RPP).

Figures in focus States of imbalance Selected countries' international trade balance with China (in € bln), Jan-Jun 2012 6 3 0

On WBJ.pl

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For decades the Finnish Houses have represented one of Warsaw’s most captivating neighborhoods. Their future though, is far from bright. Read more on WBJ.pl this week.

Au

The Finnish-ed Houses?

Source: Eurostat

DATELINE

Event:

Location: Web:

The annual Warsaw Marathon will raise funds for the Bátor Tábor Polska Foundation, an organization that offers therapeutic camping opportunities to children with chronic diseases in Central and Eastern Europe. Participants are expected to be sponsored by friends, family and colleagues for every kilometer they run. Organized by Kompania Wra˝eƒ, the marathon route will travel through Warsaw’s key landmarks, including the Old Town. Warsaw kompaniawrazen.pl

OCTOBER 4 ‘BUSINESS IS TALKING’ Event:

This congress, organized by Netia, is an experience-exchange platform for new technologies and their application in business. It provides knowledge of ICT solutions and innovation technologies. Each year, the congress brings together over 1,000 partici-

AIG Lincoln ................................14 Ghelamco Poland ......................20

Web:

8-10

EXPO REAL 2012

Event:

This commercial real estate trade fair – one of the biggest in Europe – focuses on networking, market orientation and cultivating valuable business contacts. Across the 64,000-sqm site, 1,610 exhibitors present their real estate product portfolios. Messe München, Munich Exporeal.net

Location:

Amcor ........................................14 Grupa Lotos ................................6 Axel Springer ..............................5 Gujarat Industrial Development Azoty Tarnów ............................5, 6 Corporation ..................................5

Web:

10-11 INTERNATIONAL FORUM ON PUBLIC-PRIVATE PARTNERSHIPS Event:

Location:

Web:

Organized by the British Polish Chamber of Commerce, this event will focus on international, municipal and regional infrastructure. Column Hall of the Ministry of Economy, Plac Trzech Krzy˝y 3/5, Warsaw bpcc.org.pl

Reas............................................21 Ringier..........................................5 Ringier Axel Springer ..................5

Backer OBR................................17 Hays Poland ..............................21 Bank Millennium........................18 Hines ..........................................21

Robyg..........................................20

Bank Zachodni WBK..................18 Hossa..........................................21 Royal Greenland Seafood ..........17 Bayer ..........................................21 IBM ..............................................6

Location:

Ramirent ....................................17

Amazon ......................................27 Gillette ........................................14

pants, and is strongly supported by TVN CNBC. This year’s theme will be “Integration, Innovation, Inspiration.” Multikino Z∏ote Tarasy, Warsaw biznestorozmowy.pl

SEPTEMBER 30 34TH WARSAW MARATHON

Company index ABB ............................................14 Fujitsu ........................................14 Raffles Hotels & Resorts ..........20

September/October

Copper to last 40 years Copper giant KGHM estimates that if the current pace of production continues, then copper deposits in its Lower Silesia mines will last for the next 3040 years, reported Parkiet. The copper miner estimates that current and future projects could expand its copper-resource base by some 17 million metric tons. ●

Rados∏aw Sikorski was even more forthright. “Any doubt whatsoever regarding the conduct of October’s parliamentary elections in Ukraine will bury the country’s European aspirations,” Mr Sikorski said. Meanwhile, President Komorowski admitted that Ms Tymoshenko’s imprisonment is a “serious and significant obstacle on the path of Ukraine getting closer to the EU.” Although Mr Yanukovych has vowed he is committed to his country’s closer integration with the EU, Kiev’s ties with Brussels have been strained since Ms Tymoshenko, the Ukrainian president’s main political opponent, was sentenced to seven years in prison last October for an abuse of office charge related to a 2009 gas deal with Russia, which she negotiated as then-prime minister.

Was Poland’s rank in a report on global economic freedom, a fall from 42nd in last year’s edition.

nce Po lan Cz d ech Re pu blic

An average of 44 people have to compete for each available job in Poland, according to figures from the Central Statistical Office. In 2011, the average number of people going for every job was 41. The worst situation is in the Warmiƒsko-Mazurskie voivodship, where there are an average of 105 people vying for each workplace. Silesia offers the best employment opportunities, since there are 23 people applying for every job vacancy.

was the measly growth of industrial output y/y in Poland in August. Economists said the number indicated Poland was in slowdown mode, and expect more negative figures to come.

Fra

Over 40 people for each job

0.5%

ly

Oslo, Tokyo and Zurich are the most expensive cities in the world, according to the latest edition of the “Prices and Earnings” study from Swiss bank UBS. Warsaw was ranked 57th, just below Jakarta and above Kiev. The report also shows that the highest gross wages are earned by workers in Zurich, Geneva and Copenhagen.

Ukraine’s future

Sp ain

Warsaw is 57th mostexpensive city

Numbers in the News

Ita

Plans to digitize key government services are set to be delayed until 2016 due to alleged corruption during the bidding process and fears of vendor lock-in. It is hoped the planned changes will reduce bureaucracy by allowing Polish citizens to apply for services such as new ID cards online instead of at government departments. Use of the system was originally due to start at the end of 2014.

IN THE SPOTLIGHT

UK

E-government tender corruption

SEPTEMBER 24-30, 2012

SHUTTERSTOCK

2

Soma ............................................5

Blackstone ................................20 Invest in Pomerania ..................21 BPH ............................................11 Jeronimo Martins Dystrybucja ..17

Sud Architectes..........................20

BRE Bank ..................................20 Jones Lang LaSalle ..................21 Swedwood ..................................17 Bridgestone Stargard ................17 Kasama Investments ................20

Takami Holding ..........................20

Browary Polskie ........................10 KGHM ......................................2, 6 BSH ............................................14 KPPD ..........................................17

Tate & Lyle..................................14

BSN-Gervais Danone ................14 Legg Mason................................20 Tauron ..........................................6 Business Support Solutions......14 LM Wind Power..........................17

Tieto Poland ..............................17

Capital Park ..............................21 MasterCard ..................................6 Citi Financial ..............................14 Mercedes....................................14

Torus ..........................................21

Citi Handlowy ......................14, 24 Mid Europa ..................................6 TVN ..............................................5 Coko Kunststoffwerk ................14 Multi Development ....................21

UniCredit Process &

Coloplast ....................................17 Netto ..........................................17 Corning Cable Systems ............14 Penta Investments ....................19

Administration ..........................17

Dell ............................................14 PGE ..............................................6 Unity Line ..................................17 DHL ............................................14 PGE Zespó∏ Elektrowni Dolna

Visa Europe ..................................6

Dom Development ....................20 Odra ............................................17 Echo Investment ........................21 PGNiG ..........................................6

Vivendi ..........................................5

Eko Holding..................................6 Philips ........................................14 vsf creative ................................20 Enea..............................................6 PKN Orlen ..................................20

Warsaw Stock Exchange ......6, 14

Ericpol ........................................14 Polska ˚egluga Morska ............17 Espersen Polska ........................17 Procter & Gamble......................14

X-Trade Brokers ..................18, 24

Euronet ......................................20 PwC ............................................14 Zak∏ady Azotowe Pu∏awy ............6


NEWS

SEPTEMBER 24-30, 2012

Euro zone crisis

EU mulls giving non-eurozone states a say in banking union presented by the European Commission is completely beyond our interest. We just can’t join a body in which we would have no vote while being subject to its decisions,” said Mr Rostowski at an informal meeting of European finance ministers in Cyprus. The creation of a banking union has been suggested as a means to address the roots of the financial crisis and prevent

After Polish Finance Minister Jacek Rostowski announced in mid-September that Poland would not be joining the proposed euro zone banking

“At the current stage of development, the proposal presented by the European Commission is completely beyond our interest” Finance Minister Jacek Rostowski

it from recurring. A detailed proposal for the creation of such a union was put forward by European Commission President José Manuel Barroso earlier in September. The EC wants to give the European Central Bank

union in its current form, reports have emerged that the EU’s decision-makers are working on a compromise to accommodate non-euro members who might want to be a part of the process. “At the current stage of development, the proposal

supervisory power over all banks in the euro zone, “with a mechanism for non-euro countries to join on a voluntary basis,” it said in a statement. However, EU Budget Commissioner Janusz Lewandowski admitted later that countries outside the euro zone would only be allowed to “cooperate closely” with the banking union but would not count as full-fledged members. They would therefore not have the right to vote. Last week the Polish Press Agency (PAP) reported that the EC and the ECB were “checking whether non-euro members could have a bigger say and more rights,” regarding the body that would be in charge of bank-supervision, “rights that would be close to voting power.” But EU sources also told PAP that it is “out of the question” that non-euro members would have full-fledged voting rights on the proposed ECB bank-supervisory council. Remi Adekoya

Illegal alcohol

Poland bans Czech alcohol following deaths Poland has banned the sale of strong Czech alcohol following recent deaths attributed to illegally produced vodka containing the toxic substance methanol. As WBJ went to press, a total of 23 people had died, and 36 had been hospitalized in the Czech Republic after consuming bootleg spirits. Poland’s chief health inspector said in a statement last week that his job was, “to keep people safe from poisoning. That is why I have decided to suspend the trading of alcohol above 20 percent that was produced in the Czech Republic.” Authorities have outlawed the sale of Czech spirits for one month starting from September 15. The ban does not relate to Czech beer and wine, which will still be available in Polish stores. Following the outbreak of the crisis, customs officers in southern Poland arrested two men after the discovery of 194 bottles of spirits in identical bottles to those linked to the Czech deaths.

SHUTTERSTOCK

Illegal alcohol sales are costing Polish firms up to z∏.1.2 billion a year

Two Polish deaths have been linked to drinking illegal vodka Customs officials in Kielce also discovered some bottles of illegal alcohol believed to be from the Czech Republic, but which had Polish labels in attempt to disguise the real source of the drinks. In recent months two people have died in Kielce after consuming bootleg spirits. In late August, a 58-year-old man died and his wife lost her eyesight. Then, at the start of September, a 55-year-old woman passed away two days after drinking contaminated vodka. Poles currently spend some z∏.2 billion a year on illegal alcohol, with 15 percent of spirit-

based drinks in Poland currently coming from illegal sources. And due to the ongoing economic crisis, producers and distributors fear this figure will further increase demand for illegal drinks in the future. The growth in the illegal drinks trade is losing the Polish alcohol industry up to z∏.1.2 billion a year. However, Polish alcohol firms are now hoping that the alcohol-related deaths in Poland’s neighboring country will make people more aware of the dangers related to drinking illegal alcohol. David Ingham

3

Poles want KwaÊniewski back Some 21% of Poles believe that Aleksander KwaÊniewski, Poland’s president between 1995 and 2005, would be the best successor to Donald Tusk once his time as the country’s prime minister comes to an end, according to a poll carried out by Polish weekly Wprost. “This is a very good result, especially for a politician who hasn’t been participating in politics for seven long years,” the magazine commented.

Government to allow GMO crops

COURTESY OF THE EUROPEAN PARLIAMENT

The EC and ECB are reportedly working on a way to give non-euro countries a voice in the decision-making process

www.wbj.pl

FM Rostowski said Poland can’t join a body in which it “would have no vote while being subject to its decisions”

The Polish government plans to allow the cultivation of genetically modified crops (GMOs) despite the fact that many EU countries currently do not allow such measures, reported Rzeczpospolita. Production of GMO crops for research purposes is the only exception to the current ban on GMOs in Poland. ●


4

NEWS

www.wbj.pl

Organized crime

SEPTEMBER 24-30, 2012

Historical artifacts

Chinese-Vietnamese crime Vistula reveals hidden treasures following drought gang in z∏.2.6 bln fraud

Electronics and home appliances were among the illegally imported goods thanks to information provided by the Lithuanian state, which raised the alarm about the frequent transportation of large amounts of money from Poland. The Polish security services also cooperated with their counterparts in the Czech Republic, Germany and Ukraine. The ABW determined that the money being transported came from a criminal gang

selling goods at a shopping center in Wólka Kosowska, near Warsaw, as well as from sites in the Czech Republic and Germany. It also turned out that large amounts of money were transferred via bank accounts. The money first went to Ukraine, and from there to companies registered in China and tax havens including Panama and Belize. Gareth Price

Record low levels of water in the Vistula River, caused by this summer’s drought, have revealed a treasure trove of historical artifacts that were previously hidden from view. Among the numerous finds are intricately carved pieces of marble which formed parts of pillars, fountains, and staircases. The stonework is believed to have laid undiscovered for over 350 years, after being stolen by 17th-century Swedish invaders who looted Polish castles. The Scandinavian invaders lost their haul when overloaded barges, which were being used to transport the goods to Gdaƒsk and then back to Sweden, sunk under the weight of the treasure. The artifacts were taken during the so-called Swedish Deluge, a series of raids on the Polish-Lithuanian Commonwealth, which took place between 1655 and 1660. During this period Warsaw was ransacked on numerous occasions and its population was

REPORTER

In one of the largest and most serious cases of fraud in Poland in recent years, a criminal group from China and Vietnam, which imported clothes, home appliances and electronics to Poland was found to have transfered some z∏.2.6 billion out of the country. The group did not pay taxes and transferred their profits abroad, Puls Biznesu reported, citing its own sources. It is estimated that losses to the state resulting from the unpaid taxes may be as high as z∏.1 billion. Charges have been filed against eight people, and an additional five are still to be brought into custody. Some z∏.3.5 million in cash has reportedly been secured. The Internal Security Agency (ABW) learned about the group in April 2010,

Marble pieces from the 17th century and WWII explosives were among the finds

SHUTTERSTOCK

Eight people have been charged in connection with the fraud, which reportedly led to a loss of z∏.1 billion for the state budget

Low water levels have revealed historical artifacts reduced from 20,000 to just 2,000. “Now we have evidence, the best material evidence of the Swedish invasion so far,” Hubert Kowalski, deputy director of the University of Warsaw Museum, told Reuters. But along with these older finds, more recent historical relics from the capital’s violent past have been discovered as the Vistula’s water has dropped to its lowest level in 200 years.

Unexploded WWII ordnance and a some pieces of Jewish gravestones have also been found on the river bed. The fragments of gravestone were used to pave the bottom of the river after it was damaged during the war. But despite the importance of the dry weather in finding the missing artifacts, Mr Kowalski said that some of the pieces cannot be removed until water levels rise again. David Ingham

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BUSINESS

SEPTEMBER 24-30, 2012

www.wbj.pl

5

Indian investment

Poland, India seek to improve business ties

Media

Axel Springer to take over Poland’s top web portal UOKiK has given the go-ahead for the deal, worth over z∏.900 million

ringer paying z∏.956 million for 75 percent of Onet from TV broadcaster TVN. Ringer Axel Springer valued Onet at z∏.1.2 billion, below TVN’s own valuation, but more than analysts’ expected, reported Reuters. TVN suffered a Q2 net loss of z∏.230.6 million, worse than the z∏.214 million loss analysts had expected, and the Onet.pl sale is likely part of a strategy

Ringier Axel Springer, a joint venture between German publisher Axel Springer and Swiss firm Ringier, has been given the green light from the Office of Competition and Consumer Protection (UOKiK) to buy Poland’s most popular web portal, Onet.pl. Onet.pl has 14 million monthly users, which is roughly 72 percent of all internet users in Poland. UOKiK decided that the takeover would not limit market competition. Ringier Axel Springer also owns Poland’s number-one tabloid Fakt, as well as the Polish editions of magazines Newsweek and Forbes. The deal sees Ringier Axel Sp- Onet.pl boasts 14 million monthly users

to shed non-core business. Two weeks ago, UOKiK also approved a deal that will see its pay-per-view TV unit merged into a venture controlled by Vivendi’s Canal+. Reuters also reported that the price for the 75 percent stake in Onet.pl could still increase to over z∏.1 billion at the deal’s closing, expected at the turn of 2012. Remi Adekoya

“Petrochemicals and diamonds are particularly strong industries for Gujarat, as is the automotive industry,” said Mr Swain. “Now is the very beginning of our involvement with Poland and we will try to grow it,” Mr Swain said. ●

Heavy industries Gujarat’s contribution to India’s manufacturing sector (in %) 100 80 60 40 20

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chemical firm Azoty Tarnów has considered establishing a joint venture for the production of caprolactam in Gujarat. The company could not be reached for comment. Poland’s Economy Ministry says Polish firms are especially well-equipped to launch investments in India in the mining, power and defense industries. “The Indian market is growing fast and we can expect very strong growth in Polish investments there over the next couple

Gujarat is an important province for manufacturing, accounting for 17 percent of India’s industrial output. Moreover, companies located there account for a 30 percent share of the country’s stock market capitalization.

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Polish companies. “India was a dominion of Great Britain, so many Polish managers see it as closed to them. Moreover, it is difficult to establish a company there since foreign firms have to establish joint ventures with an Indian partner in order to launch an enterprise,” he added. The Indian market is also not the most amenable to investors. According to the World Bank’s latest Ease of Doing Business ranking, India is ranked a lowly

“We are looking to forge a two-way business relationship between our two countries,” said Shri B.B. Swain, managing director of the GIDC. “We also hope to promote the other provinces of India,” he added.

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“India was a dominion of Great Britain, so many Polish managers see it as closed to them”

Representatives of the Gujarat Industrial Development Corporation (GIDC) visited Poland’s capital last week to drum up business.

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Nevertheless, Polish companies are active in India, with some of the more notable investments there including Toruƒskie Zak∏ady Materia∏ów Opatrunkowych’s hygiene products factory in Dindigul, and Can-Pack Poland’s metal packaging plant in Aurangabad. Moreover, according to Poland’s Economy Ministry,

When it comes to Indian investment activity in Poland, total cumulative Indian FDI at the end of 2010 amounted to z∏.226 million, compared to total Polish FDI in India of z∏.524 million. However, there has been a recent noticeable increase in Indian investments in Poland in the IT and BPO sectors, with services firm Zensar locating in Gdaƒsk and HCL in Kraków. Heavy industry firms including ArcelorMittal are also present in the Polish market, while packaging company Uflex made a €65 million investment in Poland last year. Poland is expected to grow in popularity among Indian companies, since it offers a gateway to Western European markets and has a robust, if slowing, economy. “Poland is a very good destination for investment, it is doing very well right now” said Shri B.B. Swain, managing director of the Gujarat Industrial Development Corporation. “It is a rare economy in Europe in that it has grown over the past few years,” he Gareth Price added.

uti

A noticeable increase Polish activity

Gujarat: India’s industrial heartland

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However, they face a tough task in changing the mindset of many Polish companies. “There are historical reasons behind relatively low levels of investment by Polish firms in India,” said Marek Or∏owski, CEO of Soma, a company that organizes business missions abroad for

of decades,” said Mr Or∏owski.

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Barriers to business

132nd, compared to Poland, in 62nd place.

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Investing in India is often seen as an area of unfulfilled potential for Polish firms, given the size and development prospects of India’s economy – the world’s third-largest by purchasing power parity. Total Polish FDI in India amounted to just €9 million in 2010, compared to €17 million in Kazakhstan and €30 million in Iran, according to National Bank of Poland data. Although that was a particularly lean year, experts still see plenty of room for improvement. Two Indian organizations paid visits to Warsaw earlier in September to tout investment opportunities and strengthen business ties between Poland and India. Gujarat Industrial Development Corporation, a government investment agency representing the northwestern province of Gujarat, and the PHD Chamber of Commerce and Industry both led business delegations from India to the

Polish capital. Their visits also featured business-to-business meetings between Polish and Indian companies.

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There remains plenty of room for improvement in a business relationship that hasn’t yet truly gotten off the ground

Source: Gujarat Industrial Development Corporation


BUSINESS

www.wbj.pl

IBM has opened a security operations center in Wroc∏aw. “Companies are faced with a constantly evolving threat landscape, with emerging technologies making it increasingly difficult to manage and secure confidential data,” said Kris Lovejoy, general manager, IBM Security Services.

Chemical giants to merge Chemicals firms Azoty Tarnów and Zak∏ady Azotowe Pu∏awy have signed an agreement which outlines a plan to consolidate the two companies under the name Grupa Azoty. One of the strategic goals of the emerging group will be to list Grupa Azoty on the Warsaw Stock Exchange’s blue-chip WIG20 index.

Eko rejects Mid Europa takeover Analysts thought that Polish supermarket chain Eko Holding would almost certainly end up in private equity firm Mid Europa’s portfolio last week, but they turned out to be wrong. Even though Mid Europa’s offer of z∏.5.5 per share is much higher than that of its competitor, Advent International, Eko Holding’s majority shareholders did not even want to discuss the offer. Regulators have launched an investigation into the matter. ●

Energy

Lotos and PGNiG team up in search for oil and gas in Poland The two statecontrolled entities are seeking to improve Poland’s energy security State-controlled refiner Grupa Lotos and Poland’s gas monopoly PGNiG have reached a strategic agreement for the joint exploration of conventional and unconventional oil and gas. The deal has been struck to help increase domestic production of energy. Under the agreement, Lotos will be given the option of acquiring a share in each of PGNiG’s seven exploration licenses in Poland, some of which cover unconventional oil and gas. The agreement gives Lotos the opportunity to acquire stakes in the concessions. But PGNiG has reserved the right to act as an operator in each of them. “The theoretical and practi-

cal knowledge of geologists, adequate risk management and a robust financial base are key to success in gas exploration projects,” said Gra˝yna PiotrowskaOliwa, president of the management board at PGNiG. “I want to leverage these assets the best I can and I am glad that for our prospective licenses in the north of Poland we have acquired a partner whose business profile aligns well with our own capabilities,” she added. Cooperation between the two companies is aimed at speeding up exploration for hydrocarbons in Poland, as well as to raise output of oil and gas produced domestically. Poland currently relies heavily on Russian gas supplies, which are expensive and whose reliability is questionable. Poland’s average gas consumption is over 14.5 billion cubic meters a year, only onethird of which is covered by domestic sources.

Poland is trying to reduce its reliance on Russian oil and gas “The agreement we signed … is of material importance to national energy security,” said Pawe∏ Olechnowicz, Lotos CEO. “We expect that the joint effort with help increase the volumes of both oil and gas

produced in Poland and, consequently, further diversify the sources of supply for domestic customers,” he said, adding that the door is also open for joint offshore projects and projects outside Poland, as well

as for commercial cooperation. Additionally, PGNiG recently signed an agreement for cooperation with KGHM, Tauron, PGE and Enea regarding the prospecting for and production Gareth Price of shale gas.

Interchange fees

Industry giants lower their rates Legislative limits for interchange fees are in the pipeline, but cutting too fast could pose problems Visa has joined MasterCard in announcing plans to unilaterally lower interchange fees for transactions with payment cards in Poland. Interchange fees are small charges paid by a

merchant’s bank to the cardholder’s bank. Visa says it is seeking to put its rates in line with what was provisionally agreed at a round-table discussion headed by the National Bank of Poland. Earlier this year the NBP brought stakeholders together in an attempt to broker a voluntary, cross-industry agreement on interchange-fee limits, but talks fell through. The central

Legal News Contact: Miros∏aw Stefanik ms@pnplaw.pl

Legal red-tape reduction On September 11, the Polish government accepted an amendment to the Act on the National Record of Convictions (NRC). The proposed change is designed to speed up the passage of documents from ordinary courts to the NRC by replacing traditional paper documents, sent by post, with an electronic system. This means that documents will be sent quicker and the amount of red tape related to court procedures will be reduced. Moreover, the number of subjects that are entitled to obtain information from the NRC is to be increased. This refers to entities that are obliged to appoint officials who have a clean criminal

record, including members of management boards and supervisory boards of companies.

Changes relating to intelligent transportation systems On September 28, an amendment to the act on public roads relating to intelligent transportation systems (ITS) in the field of road transport is due to come into force. The changes will make it possible for public road administrators to implement ITS to deal with traffic management on public roads. The aim of the change is to improve drivers’ security, to make the transport system more efficient, and to protect the environment. ●

BROUGHT TO YOU BY PETER NIELSEN & PARTNERS LAW OFFICE

bank had devised a program aimed at lowering fees gradually, so as not to harm the growth of the domestic non-cash payments market. Rates in Poland are among the highest in Europe, and the NBP wanted to reduce them incrementally from the current average of 1.6 percent to the European average of 0.7 percent for debit cards and 0.84 percent for credit cards in 2017. The NBP blamed MasterCard for the breakdown in talks, since the company did not agree with the tabled proposal. “In a situation where the National Bank of Poland-sponsored program to reduce card fees in Poland cannot be turned into practice, we would like to pursue as many of its goals as possible,” said Gosia O’Shaughnessy, Visa Europe senior vice president. With regard to Visa debit cards, the interchange fee will stand at 0.9 percent for micropayments (up to z∏.20) and 1.25 percent for transactions above z∏.20. For Visa credit cards, the respective rates will be 1 percent and 1.3 percent. The rates will come into effect in January. MasterCard announced in May that it would be unilaterally cutting interchange rates on some of its products.

Legislative route “The cuts by MasterCard and Visa are very positive for us,

SHUTTERSTOCK

IBM security center

SEPTEMBER 24-30, 2012

SHUTTERSTOCK

6

Polish interchange fees are some of the highest in Europe but the level of the cuts is not as deep as envisaged in our program,” said Robert Klepacz, deputy director of the Payment System Department at the NBP. The NBP has now forwarded its proposal for capping interchange fees to the Finance Ministry, which is currently also considering a number of legislative proposals from members of the Sejm (the lower house of parliament) and industry groups. Ma∏gorzata Brzoza, spokesperson for Finance Minister Jacek Rostowski, said that the Ministry of Finance would likely present a draft of the government position to the

Council of Ministers for adoption. The government’s draft position, she said, would be based on the proposals from the Sejm parliamentary caucuses. She added that the NBP’s proposal is being considered as part of the common discussion on interchange fees. “We are aware that some of the draft proposals contain much sharper and quicker reductions than we proposed,” said Mr Klepacz of the NBP. “If you reduce too fast and deep, the costs could be passed on to the cardholder – reductions should be step-bystep,” he added. Gareth Price



8

INTERVIEW

www.wbj.pl

SEPTEMBER 24-30, 2012

Cyprus

The troubled presidency Andreas Zenonos, Cyprus’ ambassador to Poland, talks with WBJ about the impact of the euro zone crisis on his country, the priorities of the Cypriot presidency of the EU and relations between Cyprus and Poland Ewa Boniecka: Cyprus has taken over the sixmonth rotating presidency of the EU Council at a time when it is encountering major financial problems. How bad is Cyprus’ financial situation and what kind of help are you hoping for from the EU? Andreas Zenonos: Certainly Cyprus is facing some financial and economic difficulties, but we are not in such a bad situation as some foreign

media make us out to be. Let me point to the specific situation of Cyprus in order [for you] to understand the present economic problems. Stable and optimistic-looking economic growth which began in the late 1960s was abruptly interrupted in 1974, by the Republic of Turkey’s military invasion, occupation and forceful expulsion of the Cypriot people from their homes, business and properties. This invasion and occupation of 36.2 percent of our territory resulted in a loss of 70 percent of the country’s total gross economic output, to the creation of an overnight unemployment rate of 50 percent and, worst of all, to a situation where one-third of the total population was homeless.

From the economic point of view therefore, the areas that Turkey has taken from Cyprus are the most fertile ones. Under these circumstances, it was imperative to have a new economic strategy for Cyprus, whereby more emphasis was put on the development of the secondary and tertiary sectors. Between the late 1970s and 2007, Cyprus experienced a period of high levels of economic growth. ... In 2007, the €17 billion Cypriot economy closed with a budget surplus of €505.5 million, representing a surplus of 3.5 percent in terms of gross domestic product, while public debt was below 60 percent of GDP. In addition to these sound public finances, Cypriot con-

from approximately 3 percent in 2007 to 11 percent today. In order to re-capitalize the banks and re-inject the economy with liquidity, the Cypriot government has asked for financial assistance and hopes to receive it with conditions which will not be counter-productive to the objective of creating economic growth and jobs. Now the Cypriot authorities are negotiating with the International Monetary Fund, the European Central Bank and the European Commission about the amount of a possible loan.

sumers had at their service a large banking sector, from which they could easily acquire a loan. ... Unfortunately, the two largest Cypriot banks invested more than €2 billion in Greek government bonds, which, following the “Greek haircut,” they lost. Being €2 billion short overnight left Cypriot banks with serious liquidity deficits and, as a consequence, their ability to continue providing consumer and business loans was impaired. As a result, there has been a fall in the purchasing power of Cypriot consumers, a fall in economic activity, an increase in the number of small and medium businesses which have closed down, a fall in consumption and a rise in unemployment

SHUTTERSTOCK

COURTESY OF THE EMBASSY OF THE REPUBLIC OF CYPRUS

Brussels is irritated that Cyprus has also turned to Russia for a credit line. There are accusations that your banks are helping Russians “to launder dirty money.” what is your reaction to these claims, and how you would define Cyprus’ relations with Russia? Since Cyprus gained its independence in 1960, relations with Russia have developed very quickly in all spheres, just as they have done with many other countries. Today, relations with Russia are very close in all spheres: economic, educational, cultural and political. Cyprus is a tourist destination for tens of thousands of Russian citizens each year while for the last five decades, Russian universities have provided tertiary education to thousands of Cypriot citizens. Relations between Cyprus and Russia are characterized by political trust and we are proud of that. Regarding the potential Russian loan, I would like to reverse the ques-


INTERVIEW

SEPTEMBER 24-30, 2012

“It is in our interest that Turkey transforms itself into a truly democratic state that solves its differences with other countries through civilized dialogue” tion: If the Russian government is ready to grant a loan to Cyprus with a lower interest rate than the EU, should the Cypriot government reject such a loan? As regards the “dirty money” that you mentioned, it is not for me to comment on the business activities of private individuals from other countries. The Republic of Cyprus is a full member state of the EU and on this issue, as well as on all other issues, follows and implements the values and laws of the EU. We are not a tax haven and we all know which countries are tax havens. The Cypriot government has said that the problem of the division of the island and relations with Turkey will not interfere with the presidency of the EU. Nonetheless, the issue remains, so what is the outlook for solving it? We treat the military occupation and criminal colonization of one-third of our country by ... Turkey, as a separate issue from our EU presidency. Despite threats and statements by the leadership in Ankara about freezing relations with the EU presidency during the second half of 2012, our policy will be to fully support Turkey’s European aspirations provided that, as a candidate country, it fully respects and fulfills all of its obligations vis-à-vis the EU. … It is important to remember that the efforts to solve the Cyprus problem are undertaken within the framework of the United Nations and not in the European Union. We are ready to continue negotiations to reunite the island in parallel with our EU presidency. Let me point out that it is in our interest that Turkey transforms itself into a truly democratic state that solves its differences with other countries through civilized dialogue and not through military invasions, occupations and ethnic cleansing. However, at the end of the day, Turkey’s future is in its own hands and it will have to end its military occupation of Cypriot territory if it wants to accede to the EU. Let’s turn to the priorities of the Cypriot presidency. What are they? First of all, our motto is “Towards a better Europe,” meaning a Europe closer to its citizens, its neighbors and the world. In internal EU issues, the main priorities of the Cypriot Presidency of the Council of the European Union include (a) successfully concluding

negotiations for the next EU Multiannual Financial Framework for the years 2014-2020 with emphasis on economic, social and territorial cohesion, (b) reforming the Common Agriculture Policy and the Common Fisheries Policy, (c) promoting the issue of EU Energy security, (d) reaching an integrated Maritime Policy, (e) achieving a Common Asylum System and (f) deepening the EU internal market and removing its remaining barriers. In external issues, the main priorities of the Cypriot presidency include (a) promoting the EU’s relations with the Southern Neighborhood, (b) enlargement and (c) food security. Cyprus, as a big international maritime center, wants to push forward the development of an integrated EU maritime policy. Also very important is the development of a cohesion policy in the framework of the next EU budget. What is your perspective on these issues? On October 8, 2012, we will be hosting an informal Ministerial Meeting on EU Integrated Maritime Policy, in Cyprus. The EU Integrated Maritime Policy is an important tool in meeting the objectives of the Europe 2020 Strategy and Cyprus is ready to contribute and cooperate with the European Commission in this direction. Cyprus sees potential for an EU Integrated Maritime Policy. ... We believe that the maritime sector and maritimerelated activities are very important for the economy and can add value to economic development and job creation in the European Union. And the cohesion policy is a very important factor of the whole EU budget and we have to discuss how to maintain it. Are you optimistic that all these matters will be dealt with successfully during this present financial crisis? I will rather use the word “realistic” towards setting the shape of the next EU budget. We are continuing discussions about it and, as president, we have to present the report on ongoing negotiations and this has to be followed by the decisions of all member states at the end of December. In spite of the present financial crisis, we have to hope for the best and to find a consensus about the shape of the budget, gathering into it all of the required elements, including cohesion policy. It is not a budget for one member state – richer or poorer – but

for the whole European Union in the coming years. I am not a prophet, but I think that if we deeply evaluate the roots of the economic crisis and look at the European situation in a global framework and try to find solutions without egoism, we will mobilize all members and citizens to participate in decisions leading us out of the crisis and look at the EU as our common future not only through the eyes of European technocrats but through the eyes and aspirations of ordinary people. What political impact did last April’s visit of Prime Minister Donald Tusk to Cyprus have on bilateral relations between Cyprus and Poland? The visit of Prime Minister Tusk to Cyprus last April gave an impetus to bilateral relations and to [the examination of] new areas of potential cooperation. The visit was an opportunity for the two heads of government to discuss regional, international and European issues. It also gave the two leaders a face-to-face meeting at which they discussed cooperation within the framework of our common 18-month Trio Presidency Program. Generally speaking, our cooperation in the Trio during the months prior to the preparation of the Trio Program brought us closer together and made us better understand each other’s positions and sensitivities. Why is economic cooperation between Poland and Cyprus so small? It is true that our bilateral trade is not as high as we would like it to be. It is for this reason that in 2006, we set up a Commercial Center in our Embassy and I am pleased to say that since then the value of Cypriot exports to Poland have increased from €2.6 million in 2007 to €3.7 million in 2011. The main Cypriot exports to Poland include potatoes, Halloumi Cheese, fruit, vegetables, nuts and pharmaceuticals. In the context of our efforts to increase exports even more, we organized two Cyprus-Poland business forums in Poland last year and are planning to organize one more this year. Polish exports to Cyprus, on the other hand, were valued at €34.8 million in 2011 and I think that is satisfactory, if you consider the small size of the Cypriot market. Polish exports to Cyprus include furniture, lamps, mattresses, tobacco, electrical products and mechanical products. ●

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COVER STORY

www.wbj.pl

Cigarette prices to rise Excise tax on tobacco products will increase by 5% from 2013, reported Puls Biznesu. The Ministry of Finance estimates the tax increase will boost its budget by z∏.359 million a year.

Beer sales up Beer sales rose year-onyear in the second quarter but Euro 2012 failed to provide the previously predicted major sales increases, according to a report published by Browary Polskie. During Euro 2012 sales rose a mere 1.8%, much less than expected. In total Polish breweries sold 19 million hectoliters of beer during the first half of the year, 7.9% more than in H1 2011.

Men’s cosmetics sales growth Male-oriented products are the fastest-growing segment of the cosmetics industry in Poland, according to data from Euromonitor International. In 2011, the value of the men’s cosmetics market grew by 6.5%, reaching z∏.1.4 billion. In the upcoming years, it will remain the fastest-grower in the cosmetics market with its value expected to reach z∏.1.6 billion by 2016.

Solar power on the rise Private households in Poland have already installed about 500,000 sqm of solar panels on their roofs, according to the Institute of Renewable Energy. That is enough panels to cover 70 soccer stadiums the size of the National Stadium in Warsaw, reported Dziennik Gazeta Prawna. ●

SEPTEMBER 24-30, 2012

Pharmaceutical industry

A bitter pill The value of the Polish pharmaceutical market took a steep dip in the first half of 2012 – thanks to the introduction of the Reimbursement Act Polish public health care reform has hit the headlines this year for all the wrong reasons. At the start of 2012, the Reimbursement Act came into force, bringing with it a number of unitended consequences, including restricted access to medicines in the case of seriously ill patients and falling sales for pharmaceutical companies. Moreover, it has so far fallen well short of its stated aim of increasing access to more effective, higher-cost innovative medicines, experts say. Leading up to the Act’s implementation, marketwatchers were particularly concerned with the planned introduction of the uniform pricing of reimbursed drugs, and the ban on any kind of discounts on them – one of the most significant changes introduced in the act.

Restricted access The Reimbursement Act has also reduced access to medicines in the outpatient sector, following the removal of a significant number of medicines from the reimbursement list. Moreover, many have been withdrawn from reimbursement when used in treatments for which they are not registered (so-called “off-label” use) – another bugbear of doctors, who argue that what matters is whether the drugs work. While changes have been made that mean reimbursement can now be provided for a large number of off-label uses, stumbling blocks remain. The Act has also resulted in

a decline in access to medicines in the inpatient sector, with reports of commonly-used chemotherapy drugs being withdrawn from conventional treatment programs and placed in a list of “non-standard” treatments, which involves considerable administrative restrictions on patients qualifying for treatment. Most recently, there have been reports of patients having difficulties in accessing high-cost medicines included in so-called “drug programs,” including patients with multiple sclerosis and rheumatic diseases. These programs replaced “therapeutic programs” as the NFZ’s principal mechanism for managing expenditure on high-cost medicines.

Sales decline The changes haven’t only impacted patients – they have had a negative impact on the

Poland’s Reimbursement Act has restricted access to medicines for many patients ruptions caused by the doctors’ disputes, together with the cost-containment policies contained in the Act, have also played a significant role. And without the Reimbursement

“The Polish government’s policy towards innovative drugs is one of the least favorable in the CEE region” bottom lines of companies operating in Poland’s pharmaceutical market as well. According to data from health care information company IMS Health, in the first six months of 2012, the value of sales at pharmacies (retail prescription and over-the-counter drugs) was down by just over 11.6 percent year-on-year, to z∏.9.6 billion. IMS Health is predicting that in 2012 as a whole (retail and hospital), the value of the market will decline by 5.2 percent y/y. The stockpiling by patients in the final quarter of 2011 in anticipation of the Reimbursement Act has certainly had an impact on the market in 2012, but the combination of the dis-

Brian Davies

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Act, there would have been no stockpiling, anyway. Pawe∏ Sztwiertnia, general director of Infarma, the

Employers’ Union of Innovative Pharmaceutical Companies, says the reasons for the downturn are clear. “These are big changes, caused exclusively by the new legal regulations – there are no other causes which would have resulted in the reduction in the demand for medicines,” he said. The cuts affect a whole industry, and not just producers. “The law is so imprecise – and restrictive as well – that it gives rise to so many questions; it affects not just pharmaceutical producers, but also

distributors, pharmacists and hospitals,” Mr Sztwiertnia said.

Redundancies strike The changes are also forcing companies to change their strategies and reduce head count – the natural response to a shrinking market. In a report by Puls Biznesu, it is estimated that from mid-2011 to the end of 2012, around 1,800 jobs will be lost in the pharmaceutical industry as a whole. The Reimbursement Act has not just had an effect on

Doctors’ dispute Rules brought in by the Reimbursement Act concerning prescriptions dominated the discussion following the Act’s implementation. Doctors were strongly opposed to the financial penalties set down in law for failure to write prescriptions in accordance with the rules, which they said interfered with their ability to treat patients properly. They also resented the rule which penalized them if they wrote a prescription for an uninsured person, arguing that they did not have the means to check a patient’s insurance status effectively.

Protests followed, causing chaos and disruption for many, and forcing the government to make amendments to the Act. But it didn’t end there. Recently dismissed National Health Fund (NFZ) director Jacek Paszkiewicz added regulations to the framework agreement between the NFZ and doctors which included more or less the same penalties as those which had only just been withdrawn. Subsequently, the dispute between doctors and the NFZ reached fever pitch, and Mr Paszkiewicz paid for the hullabaloo with his job. ●


COVER STORY

Unfulfilled promises This is where the crux of the matter lies. The Reimbursement Act was publicized by the government as a set of measures intended to increase access to more effective, higher-cost innovative medicines. In many cases, new innovative drugs offer patients relief from often chronic conditions which they could never have otherwise, and can even give patients with the most serious diseases a few more months or years of life. Poland has traditionally been a very challenging market for the innovative pharmaceutical industry, and the declarations made about increasing access to new drugs gave some hope that this situation would improve. “According to the declara-

11

More time off?

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innovative pharmaceutical producers. The domestic, predominantly generic sector is also being affected by the new regulations, which are forcing down the prices of reimbursed drugs and eroding margins. They are also likely to feel the effects of the payback system, which will require producers to pay back a proportion of any eventual state overspend on reimbursed medicines. This will come into effect if public spending on drug reimbursement exceeds 17 percent of total public health care spending. However, the situation remains manageable, and losses bearable, according to Monika Stefaƒczyk, head pharmaceutical market analyst at PMR. “I believe all the players will adjust to the situation,” she said. “The worst thing is that there are patients who suffer – some reimbursed drugs are cheaper now, it’s true, but many have been excluded from the reimbursement list, and prices of overthe-counter medicines have gone up in 2012.” The over-the-counter

tions of the Ministry of Health, the savings made thanks to the Act were due to be invested in increasing access to new innovative drugs,” said Infarma’s Pawe∏ Sztwiertnia. “Up until now, only a couple of new drugs have been added to the list, although among these are the longawaited long-acting insulin analogues. But we’re still waiting for the promises made about the Act to be fulfilled,” he added. Indeed, the most recent update to the reimbursement list, which came into effect on September 1, included no new innovative medicines. This prompted Infarma to call for the Ministry of Health to use the savings from reduced pharmacy reimbursement spending on increasing access to innovative medicines, in order to fulfill the stated aims of the Reimbursement Act. “A scandalously low number of innovative substances have been added to the reimbursement list in recent years,” said PMR’s Monika Stefaƒczyk. “The Polish government’s policy towards innovative drugs is one of the least favorable in the CEE region – only in Russia, Ukraine and other CIS countries is there a less favorable situation.” Ms Stefaƒczyk went so far as to challenge the idea that

no

is the amount by which the pharmaceutical market in Poland is expected to contract this year

(OTC) market – along with the market for non-reimbursed drugs – is growing strongly, while the market for reimbursed drugs declines, reflecting the lower spending on reimbursement by the NFZ since the beginning of the year. This means that patients are paying more out of their own pockets, because they can’t get all the medicines they need from the NFZ – or because the amount of reimbursement paid by the NFZ has dropped. Moreover, there has been no change in the rate of new, innovative drugs being added to the reimbursement list.

Sa

5.2%

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Po lp

SEPTEMBER 24-30, 2012

The Ministry of Labor is contemplating reverting back to regulations which would entitle employees to an additional day off if a national holiday falls on a non-working day. This potential change hinges to a large extent on the verdict of the Constitutional Tribunal, which will decide by October 2 whether the current legislation in place is in line with the Polish constitution.

Source: IMS Health, National data (retail and hospital) EPhMRA A-V.

Poland’s pharmaceutical market The pharmaceutical industry in Poland encompasses both the local divisions of large multinationals and producers of originator drugs. Major multinationals such as Swiss Novartis, French Sanofi and the United Kingdom’s GlaxoSmithKline have substantial production facilities in the country. The domestic industry, meanwhile, is mainly focused on the production of generics – copies of off-patent originator drugs, which are generally cheaper. Among the largest of these domestic firms are Polpharma and Adamed. ● the purpose of the Reimbursement Act was to increase access to innovative medicines. “The Act was enacted as a cost-containment policy, and its main purpose has been to cut spending on reimbursement – irrespective of the fact that the Ministry of Health declared that it would spend the money it saved on innova-

tive products,” she stated. It may be too early to deliver a final verdict on the Reimbursement Act. But so far it has failed to deliver improvements for patients, and has delivered benefits mainly for the NFZ’s budget. It can only be hoped that in the longer run, at least to some extent, it will live up to its initial billing.●

BPH to use biometric identification Bank BPH plans to install biometric readers to identify patterns made by blood vessels in its clients’ fingers, replacing the need for cards and PIN codes, reported Puls Biznesu. This technology efficiently minimizes the possibility of theft using stolen cards, as each individual client is identified by the unique biological makeup of their body. The lender expects that within two years some 70% of its clients will be making use of the technology. ●


WBJ previews content from Investing in Poland 2013, including: Zachodniopomorskie voivodship and Poland’s special economic zones

SNEAK PEEK: INVESTING IN POLAND SEPTEMBER 24-30, 2012

A prime location for investment WBJ presents a supplement featuring content from its Investing in Poland 2013 publication

Andrew Kureth Editor-in-Chief Warsaw Business Journal Group Warsaw Business Journal is proud to officially launch the fourth edition of Investing in Poland this week. Investing in Poland 2013 is intended to provide all of the information any potential investor may need to make a decision about locating his or her business in Poland. Poland presents an attractive combination of incentives for foreign investors. The country has a large,

young, ambitious and welleducated labor force. It boasts both strong technology clusters and agricultural capacity. It offers quality, low-cost manufacturing and a central location from which to ship production. But on top of that, there is a plethora of tax breaks and direct grants for investors to tap into. Fourteen special economic zones and a myriad of industrial and technology parks mean there are plenty of attractive locations with the right mix of transportation, potential partners, and resources. Poland’s economy meanwhile looks set to grow at around 2 percent both in 2012 and 2013 – a far cry from the heady days of over 6 percent growth in 2006 and 2007, but still better than most of its European peers. Poland remains one of the most attractive investment locations not only in Europe, but globally.

tact details to investment offices if you want to learn more. We also profile each of the 14 special economic zones and present a listing of all of Poland’s major industrial and technology parks. We have also put together an analysis of various trends that are making a big impact on the Polish economy – which can be found in the publication’s Trendbook section. You’ll also find legal advice and listings of business organizations and chambers of commerce (the networks you’ll need as you begin your investment), as well as listings of office space and consultancies that can help investors apply for the abundant EU funding headed Poland’s way. Importantly,

Regional focus Investing in Poland 2013 features profiles of Poland’s 16 voivodships and its major cities, as well as their various resources, investment incentives, major investors, local government leaders, and the con-

all of the information contained in the publication comes from fresh, original research performed by the

editorial staff of Warsaw Business Journal, Poland’s mosttrusted English-language newspaper. All of the articles and analyses are also writ-

ten by the staff of WBJ and its partners. All in all, Investing in Poland is a one-stop shop for information on Poland’s investment landscape. No other English-language guide can claim the same. WBJ continues to carry out this project each year because we believe that Poland is a great place to do business and a fantastic location for investment. Is it the right place for your investment? We hope the publication will help you answer that question. ●

motorways, which facilitates access to both EU markets and those of Russia, Belarus and Ukraine, make it a con-

venient place for operating logistics enterprises. In terms of energy production, the Be∏chatów power plant is one of the biggest of its kind in Europe, producing electricity from brown coal, with other multibillion-z∏oty investments expected to increase its output in the future.

Voivodships

¸ódzkie voivodship

Now, alongside these two mainstays, the most important industries in the region are energy, food processing and beverages, as well as the production of medical equipment and pharmaceuticals. Nearly 70 percent of the domestic

production of ceramic tiles and terracotta is carried out in the voivodship. Currently the region is expanding rapidly into other branches of industry, including household appliances production and biotechnology. Indeed, it was thanks to foreign investment that Europe’s largest industrial cluster producing household appliances was developed in the voivodship. The local investment authority believes ¸ódzkie’s future development will rely on the following sectors: the power industry, innovative textiles, agriculture and foodstuffs, mechatronics, information and communication technologies. To help investors in these industries, the voivodship is offering support from the state budg-

et in the form of subsidies, corporate income tax and local real estate tax exemptions.

Investors can also benefit from ¸ódzkie’s central location and good transport links. A junction of the A1 and A2

Continued on p. 14 ➡

In this supplement Introduction . . . . . . . . . . .12 Łódzkie voivodship . .12, 14 Special economic zones . .16

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Located in the center of Poland, ¸ódzkie voivodship boasts a long tradition of clothing and textile production

Zachodniopomorskie

The Manufaktura mall in ¸ódê

voivodship . . . . . . . . . . . . .17



SNEAK PEEK: INVESTING IN POLAND

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➡ Continued from p. 12

Major cities - ¸ódê Located within a radius of approximately 300 km of all major Polish cities (130 km from Warsaw), ¸ódê is a central point on the map of Poland. Its geographical position makes it a natural transportation hub, with trans-European road and rail links converging in or near the city. One major ongoing investment designed to capitalize on ¸ódê’s advantageous location is the redevelopment of the ¸ódê Fabryczna railway station into a multimodal transportation hub. Meanwhile a new terminal at ¸ódê’s international airport was opened recently, giving the airport an annual capacity of 2.5 million passengers. ¸ódê is the third-largest city in Poland, with around 730,000 inhabitants living in the city itself and almost 3 million in the region. Of these 3 million, 1.6 million are of

working age. With the unemployment rate high compared to other large Polish cities, wages are around 20 percent lower than other major Polish cities. Still, the workforce is highly trained. Since its creation in 1997 the ¸ódê Special Economic Zone has been stimulating local entrepreneurship and attracting numerous domestic and foreign investors to the city. In fDi Magazine’s Global Free Zones of the Future (2012/13) report, ¸ódê Special Economic Zone was ranked third in Europe. Catering to different industries and covering a variety of fields, approximately 40 trade fairs and exhibitions are held in ¸ódê every year. The city has also been home to some of Poland’s most important cultural figures. Pianist Arthur Rubinstein learned to play piano there while living on ul. Piotrkowska. There is also a strong film production heritage in the city, with “Holly-

¸ódê” having long served as a center of Poland’s filmmaking industry, producing some of Poland’s finest directors including Andrzej Wajda, Krzysztof KieÊlowski and Roman Polanski. Mayor: Hanna Zdanowska Area code: 42 Area: 293.25 sq km Population (March 2011): 728,892 Working-age population (Dec. 2010): 474,127 Unemployment rate (June 2012): 11.4% Percentage of city covered by zoning plans: 5.36%, planned to be 15-17% in 2014 Recent major investors: Amcor, BSH, Citi Financial, Dell, DHL, Ericpol, Fujitsu, Gillette, Procter & Gamble, Tate & Lyle Local government contact details: Investor Relations Office ul. Piotrkowska 104a 90-926 ¸ódê, email: zoi@uml.lodz.pl, tel.: (+48) 42 638 59 39, (+48) 42 638 59 40

Military Propert Agency Military Propert Agency The Military Property Agency (MPA) is a State Agency operating under the supervision of the Minister of National Defence. The main tasks of MPA include management of real property and movables considered redundant to the Ministry of National Defence and Ministry of Interior. 93% of profits generated from the management of property is allocated by the MPA to the Armed Forces Mondernisation Fund and to the Public Security Modernisation Fund. Since the beginning of its operations the MPA transferred over z∏.1.5 billion to the Funds referred to above. The MPA is a modern Agency operating under civilian management culture and in compliance with top standards, the statutory tasks of which are implemented by professional staff within the area of Poland. More than fifteen years of practice on the real property market and thousands of successful transactions confirm the status of the Military Property Agency as a credible and trustworthy partner. Military Property Agency Nowowiejska 26A 00-911 Warszawa, Poland www.amw.com.pl ph.: +48 (0) 22 314 97 00 President: Krzysztof Michalski Vice President Property Management: Ilona Kowalska Director of Real Estate Management and Marketing Department: Zbigniew Prokopczyk BROUGHT TO YOU BY MILITARY PROPERTY AGENCY

DAILY EXECUTIVE DIGEST Poland A.M. gives you the biggest Polish stories of the day. Have the most valuable news delivered to your inbox each weekday morning.

S i g n u p f o r a 2 - w e e k f r e e - t r i a l ! w w w. p o l a n d a m . p l G e r m a n v e r s i o n : w w w. p o l e n a m m o r g e n . p l

SEPTEMBER 24-30, 2012

Key facts Voivode: Jolanta Che∏miƒska Marshall: Witold St´pieƒ Area: 18,219 sq km Population (March 2011): 2,538,677 Working-age population (Dec. 2010): 1,616,227 Unemployment rate (June 2012): 13.1% Average monthly wage (private sector, June 2012): z∏.3,195.17 GDP (2009): z∏.81.87 billion, up 3.4% y/y (6.1% of national GDP) Natural resources: brown coal, clay, foundry sands, gravel, gypsum, kaolin clays, lignite, limestone, marl, thermal waters, quartz Number of students of higher education: 110,000 Number of institutions of higher education: 27 Major universities: University of ¸ódê, Medical University of ¸ódê, National Film School in ¸ódê, Technical University of ¸ódê Major airport: W∏adys∏aw Reymont Airport ¸ódê Special Economic Zones: ¸ódê Special Economic Zone: 1,104 ha, “Starachowice” Special Economic Zone: 4.03 ha

Estimated investment: Total (2010): z∏.13.70 billion (private sector: z∏.6.92 billion; public sector: z∏.6.78 billion) Of which: • Industry: z∏.6.31 billion, of which: Manufacturing: z∏.2.35 billion • Transportation and storage: z∏.1.99 billion • Real estate activities: z∏.1.71 billion • Trade; repair of motor vehicles: z∏.1.22 billion • Construction: z∏.322 million Number of new commercial and civil law partnerships registered (2011): 1,552, down 2.1% y/y Number of new sole proprietorships registered (2011): 18,909, down 16.3% y/y Recent major investors: ABB, AIG Lincoln, BSH Bosch und Siemens Hausgeräte, BSN-Gervais Danone, Business Support Solutions, Coko Kunststoffwerk, Corning Cable Systems, Citi Handlowy, Mercedes, Philips Sources of major foreign investment: Austria, France, Germany, Ireland, Switzerland, UK, US

The Warsaw Stock Exchange One of the most rapidly expanding equity markets in Europe For several years now the Warsaw Stock Exchange has been among the most dynamic stock markets in Europe, while in Central and Eastern Europe it is the undisputed leader in terms of market growth indicators, such as capitalization, trading volumes and number of IPOs. As of August 2012, WSE remains the largest national stock exchange in CEE, with domestic market capitalization of €117 bn and equity session turnover of €30,3 bn (ytd). Investors have over 850 issuers to choose from and despite turbulences on the global financial markets, the Warsaw Stock Exchange attracts new companies. It consequently ranks no. 1 in Europe by the number of IPOs and has a leading position by the value of IPOs. According to the latest quarterly PwC ‘IPO Watch Europe’ report, in Q2 2012, there were 33 public offerings on the WSE, which represented more than 41 per cent of all IPOs on European markets. By the value of IPOs, the Warsaw Stock Exchange with € 50 million ranked third in Europe after the London Stock Exchange Group and the Oslo Stock Exchange. The WSE creates attractive conditions for both domestic and foreign companies looking for growth capital; as a result the exchange lists 48 foreign issuers from 20 countries, with the largest group originating from Ukraine and the Czech Republic. One of the decisive factors for them is a solid and varied investor base, including foreign investors whose share in trading volumes reaches almost 50 per cent. The Warsaw Stock Exchange owes its dynamic development to modern infrastructure typical for a developed market, reliable regulations, high level of market participant activity and varied product range aimed at investors of different risk appetites. The WSE operates a regulated

COURTESY OF WSE

14

market of shares and derivative instruments and the alternative stock market NewConnect for growing companies. The exchange is also developing Catalyst, a market for issuers of corporate and municipal bonds, as well as an energy market. A symbolic moment, and crowning achievement of nearly twenty years of dynamic expansion, was WSE’s own IPO. The aim of the Warsaw Stock Exchange as a public company is to systematically strengthen its international position through expanding its product range for investors and issuers, attracting new companies and intermediaries, as well as to improve market organization, technology and legal regulations. The priorities for the WSE are trading liquidity, security and effectiveness. From 2011 its trading session is of the same length as in Western European markets. In order to increase its competitiveness, the exchange is working with NYSE Technologies on implementation of a new transaction system, the Universal Trading Platform (UTP), which will be more efficient and will feature expanded functionality, enabling further market growth. ●

BROUGHT TO YOU BY WSE



16

SNEAK PEEK: INVESTING IN POLAND

www.wbj.pl

SEPTEMBER 24-30, 2012

Investment locations

Special Economic Zones Poland’s diverse special economic zones have plenty to offer investors. Here is some key data from a selection of these zones There are currently 14 special economic zones in Poland, providing investors with a variety of attractive incentives including tax exemptions, good geographical location with close proximity to suppliers or customers, and investment sites already developed with infrastructure and utilities. All zones can remain open until December 31, 2020, which means that for rest of the decade they remain excellent places to do business in Poland. What is more, a proposal to extend the lifespan of Poland’s SEZs was submitted to the lower house of the Polish parliament earlier in 2012, by the Ministry of the Economy. According to the ministry’s calculations, investors in Polish SEZs saved over z∏.4.9 billion in tax breaks between 2007 and 2010. Each SEZ is unique, with its own strengths and particular focus. For example Kamienna Góra SEZ for Medium Business specializes in servicing SMEs. Kraków Technology Park deals with innovative services and technologies. Other SEZs are located in particularly attractive areas in terms of lucrative foreign markets to the east or west, or in the case of the S∏upsk and Pomeranian Special Economic

Zones, proximity to the Baltic Sea. At the same time, regardless of their dominant industries or geographic locations, all of Poland’s special economic zones remain open to a wide range of investments. Investment regulations vary in each SEZ but in general, the investor needs to agree with the specific authorities on how many jobs will be created through the investment and must later fulfill this agreement. The minimum value of an investment to be located in a special economic zone is usually €100,000. Regulations governing investment vary according to each SEZ and the size of the tax breaks available depends on the size of the investing entity and voivodship where the subzone in question resides. For specific details on investment regulations, please see the zones’ individual websites, listed below.

EURO-PARK MIELEC Special Economic Zone The first economic zone to be created, E U R O P A R K MIELEC Special Economic Zone is located in both the southeast corner of Poland and in the northwest in Zachodniopomorskie voivodship, meaning it has access to both the German and Eastern European markets. The maximum amount of corporate tax exemption (based on either investment or job creation) is 50 percent of the total expenditures on new

investments for large firms, 60 percent for medium-sized firms and 70 percent for small firms. Year established: 1995 Total area: 1,246 ha (300 ha available), further expansion expected Dominant industries: automotive, aviation, metal working, wood processing Total number of investors: 153 (225 permits issued) Total value of investments: z∏.5.17 billion Contact: www.europark.com.pl

Kamienna Góra Special Economic Zone for Medium Business As its name implies, the Kamienna Góra Special Economic Zone for Medium Business is squarely aimed at SMEs, offering “particularly advantageous conditions for operating their business.” It is, however, open to larger investors. The zone is primarily located in the Lower Silesia voivodship, with a small presence in the Wielkopolskie voivodship. Its location near the Czech and German borders is a clear asset, as is the presence of well-developed communication and transportation infrastructure near its subzones. Year established: 1997 Total area: 367.14 ha (139.30 ha available) Dominant industries: Automotive, metal, paper, printing Total number of investors: 46 (53 permits issued) Total value of investments: z∏.1.73 billion

Contact: www.ssemp.pl

Katowice Special Economic Zone The Katowice Special Economic Z o n e describes itself as the leader of Poland’s SEZs. The 9 million people living within a 100 km radius of Katowice offer huge labor and consumer markets to investors, while the local area also offers some of the best transport links in Poland, with the partially completed A4 and A1 highways running east-west and northsouth respectively. It is also located close to two international airports – Katowice-Pyrzowice and Kraków-Balice. Year established: 1996 Total area: 2,005 ha (942 ha available) Dominant industries: automotive, construction, glass, steel Total number of investors: 214 (over 335 permits issued) Total value of investments: €4.30 billion (about z∏.17.6 billion) Contact: www.ksse.com.pl

Kostrzyn-S∏ubice Special Economic Zone Officials from the KostrzynS∏ubice Special Economic Zone stress that the key advantages of investing there include the well-educated local workforce and location close to the German border. The SEZ has at least one subzone within 90

km of Berlin. Low labor costs is another advantage for investors. Land in the SEZ is ready for investment, with full technical infrastructure already in place. According to officials, certain subzones provide the possibility of a 100 percent exemption from local taxes in addition to income tax or employment cost reliefs. Year established: 1997 Total area: 1,454.50 ha (726.23 ha available) Dominant industries: automotive, electronics, paper, metal and wood processing Total number of investors: 110 (217 permits issued) Total value of investments: z∏.4.38 billion Contact: www.kssse.pl

Kraków Technology Park Special Economic Zone T h e Kraków Technology Park Special Economic Zone operates as both an SEZ and a technology park, supporting innovation and new technology, as well as bringing together scientists, entrepreneurs and investors. The city of Kraków provides it with a strong academic base, with several universities located within the vicinity of the technology park, from which qualified staff can be drawn. Officials say public aid for investors in Kraków Technology Park is the highest in Poland. Year established: 1997 Total area: 558.71 ha Dominant industries: auto-

motive, BPO, IT Total number of investors: 108 Total value of investments: z∏.1.70 billion Contact: www.sse.krakow.pl

Legnica Special Economic Zone The Legnica Special Economic Zone is situated in the southwestern part of Poland, in the Lower Silesia voivodship. It describes itself as a place where businesses can improve their competitiveness, technology and knowhow. It also allows them to develop national and international business ties. Investing in the Legnica SEZ also gives firms access to exemptions on income and property tax. The LSEZ describes itself as a high-quality investment area, since it is prepared for business activity, is equipped with technical infrastructure, subdivided to suit investor requirements and located in well-connected areas, close to major roads such as the A4 and A18 highways. Year established: 1997 Total area: 1,042 ha (760 ha is still available), expected to expand by 29 ha Dominant industries: automotive Total number of investors: 41 (103 permits issued) Total value of investments: z∏.5.07 billion Top investors in terms of value: Contact: www.lsse.eu


SNEAK PEEK: INVESTING IN POLAND

SEPTEMBER 24-30, 2012

www.wbj.pl

17

Voivodships

Zachodniopomorskie voivodship in Poland, with 47 percent of transhipments in and out of the country occurring in Szczecin. Major international and Polish ship builders Unity Line and Polska ˚egluga Morska are based there. The area is also well-known as a major sailing hub, hosting a number of races and maritime events throughout the year. In terms of business, city officials are currently focused on developing the BPO, logistics and renewable energy sectors, particularly wind energy, in addition to its more traditional maritime industries. Major sources of FDI include Germany, the Netherlands, Luxembourg and Sweden. Szczecin offers various types of public assistance for investors. Such assistance is available to companies starting or developing business activities in Szczecin.

Many of Zachodniopomorskie’s advantages as an investment destination stem from its location, situated as it is in the heart of Europe, bordering Germany to the east. The region also has 185 km of Baltic Sea coastline. These factors afford it close proximity to Western Europe as well as easy access to the lucrative Scandinavian markets, from where it also receives a significant amount of FDI US, China, India, Japan and Korea also have a presence. Among major investors in the region are Danish firm LM Wind Power and Swedish furniture giant Swedwood, which is based in Goleta. Europe’s largest fish processor Royal Greenland Seafood and Portuguese retailer Jeronimo Martins Dystrybucja are both located in Koszalin. German firm Tognum is also currently planning to build a new engine production factory in the Pomeranian SEZ, worth some €90 million. Added to the voivodship’s advantageous land and sea links, other positive features include modern public transport connections and a welleducated workforce, with many in the region speaking both German and English.

Zachodniopomorskie has over 3,000 lakes, as well as two national parks, with the Wolin National Park being home to many of the country’s famous bison. The region also boasts seven landscape parks and three golf courses, making it an attractive destination for holidaymakers. Popular recreational activities including windsurfing, kayaking and fishing also continue to attract tourists to this picturesque coastal region. Natural features attractive to investors

As the second-largest economic center in the

Sławno

Sianów

Koszalin

Mrzeżyno

Międzyzdroje Świnoujście Wolin

Polanów Karlino Białogard

Kamień Pomorski

Sławobrze Grzmiąca

Płoty Resko

Barwice Szczecinek

Łobez

Stepnica Police

Goleniów

Węgorzyno

Czaplinek Złocieniec

Drawsko Pomorskie

Chociwel

Szczecin Recz

Kalisz Pomorski

Choszczno

Pyrzyce

Estimated investment: Total (2010): z∏.8.3 billion (private sector: z∏.3.5 billion; public sector: z∏.4.8 billion ) Of which: • Industry: z∏.2.83 billion, of which: Manufacturing: z∏.889 million • Transportation and storage: z∏.1.55 billion • Trade; repair of motor vehicles: z∏.540 million • Construction: z∏.202 million • Real estate activities: z∏.56 million Number of new commercial and civil law partnershipsregistered (2011): 1,304, up 5.2% y/y Number of new sole proprietorships registered (2011): 16,793, down 8.7% Recent major investors: Backer OBR, Bridgestone Stargard, Coloplast, Espersen Polska, KPPD, LM Wind Power Blades, Netto, PGE Zespó∏ Elektrowni Dolna Odra, Ramirent, Tieto Poland, UniCredit Process & Administration Sources of major foreign investment: Denmark, France, Germany, Spain, Sweden, UK, US

Major infrastructure projects currently being implemented include the construction of an external ring-road system and the proposed reopening of the Zegrze Pomorskie Airport. The cost of the latter investment, which is currently in the planning stage, is estimated at z∏.144.27 million. Koszalin’s main industries include automotive production, electromechanical, food processing and metal working. Foreign investments have

come from countries including Canada, Denmark, the Netherlands, Norway, Spain, Sweden, Ukraine and the US, with a total of 18,400 businesses registered in the city in 2011. Along with trying to develop existing industries, the city is also attempting to attract more investments in BPO and R&D. In 2009 the Science and Technology Park was opened in order to attract investors from these sectors. Major advantages cited by

City Hall, in addition to location and good transport connections, include the low cost of labor, with the average salary 30 percent below the national average, a young and educated work force, and tax incentives for foreign investors. These include tax breaks available in the Koszalin subzone of the S∏upsk Special Economic Zone, which comprises 115 hectares and offers exemptions on income tax of up to 60 percent. ●

Mirosławiec

Stargard Szczeciński Gryfino

Stepień

Połczyn-Zdrój

Świdwin

Nowogard

Trzebież

Bobolice

Tychowo

Gryfice

ha, Pomeranian Special Economic Zone: 208 ha, EURO-PARK MIELEC Special Economic Zone: 73 ha

Darłowo

Kołobrzeg

Dziwnów

Voivode: Marcin Zydorowicz Marshall: Olgierd Geblewicz Area: 22,892 sq km Population (March 2011): 1,722,883 Working-age population (Dec. 2010): 1,112,013 Unemployment rate (June 2012): 16.7% Average monthly wage (June 2012): z∏.3,326.26 GDP (2009): z∏.52.39 billion, up 2.6% y/y (3.9% of national GDP) Natural resources: 185 km of coastline, clay, forests, good conditions for renewable energy production, limestone, national and landscape parks, oil, over 300 lakes Number of students of higher education: 85,000 Number of institutions of higher education: 22 Major universities: Academy of Art in Szczecin, Koszalin University of Technology, Maritime University of Szczecin, Pomeranian Medical University, University of Szczecin, West Pomeranian Business School, West Pomeranian University of Technology Major airport: Szczecin-Goleniów Airport Special Economic Zones: S∏upsk Special Economic Zone: 412.24 ha, KostrzynS∏ubice Special Economic Zone: 295.59

Major cities - Koszalin

Mielno

Trzebiatów

Key facts

Walcz Toczno

Trzczińsko-Zdrój

Barlinek

Chojna Myślibórz

Dębno

include a significant amount of forested area which can be used for wood processing or as agricultural land after deforestation, with the region’s soil being suitable for growing crops. Increasingly this includes organic food production. Major sources of foreign investment include Germany, Sweden, Denmark and other EU countries, although the

The presence of special economic zones, as well as the availability of EU funds and local tax exemptions are other factors which make Zachodniopomorskie a good option for investors.

Major cities - Szczecin The Zachodniopomorskie region’s historic capital, Szczecin, lies just 12 km from the German border and is situated at the mouth of the River Oder. Located close to the Baltic Sea it is home to the largest group of sea terminals

region, Koszalin is an attractive destination for foreign investors looking to locate in Zachodniopomorskie. Located close to numerous lakes, including Lake Jamno, one of the largest in Poland, and just 6 km from the coast, the city provides good access to the major Baltic Sea ports. Its location also makes it an ideal tourist destination, with almost 40 percent of Koszalin covered by green space. The city is well connected, with the E-28 highway which connects Berlin with Kaliningrad running through the city, providing it with convenient access to both the German and Russian markets.

SHUTTERSTOCK

Człopa

Lipiany

The maritime industry is a key part of the local economy. Here, sea port cranes in ÂwinoujÊcie


18

FINANCE & ECONOMICS

www.wbj.pl

SEPTEMBER 24-30, 2012

Interest rates

Manufacturing

Industrial production slows sharply finishing some road works suspended due to Euro 2012.” After the release of the worse-than-expected industrial production data on Wednesday, economists warned that macroeconomic indicators will continue to show that Poland is experiencing a slowdown. “We expect to see confirmation of negative tendencies also in retail sales data, which will fit into our scenario of clear economic slowdown,” said Maciej Reluga, chief economist at Bank Zachodni WBK, in an e-mail. Andrew Kureth

Deep dive Industrial output growth (in %) August 2011-August 2012 10 8 6 4

t. '

No

0

11 v. ' 11 De c. '11 Jan . '1 2 Feb . '1 2 Ma r. ' 12 Ap r. ' 12 Ma y '1 2 Jun . '1 2 Jul . '1 2 Au g. '12

2

Oc

Poland’s industrial production in August grew at a pace of 0.5 percent year-on-year, down from the 5.2 percent growth in July and slower than the market consensus forecast of 1.9 percent. The weakening of output growth was “broad based and was visible both in sections dependent on domestic demand and export-oriented,” Piotr Bujak, chief economist for Poland at Nordea Bank, said in an e-mailed statement. Economists said the figures were further confirmation that Poland’s economy is experiencing a steep slowdown, as a number of recent macroeconomic figures have indicated. Poland’s economic growth for the second quarter of this year came in at 2.4 percent y/y, a sharp decrease from the 3.5 percent seen in the first quarter – despite an influx of tourists for the Euro 2012 tournament in Q2.

The Central Statistical Office, which released the industrial production figures last Wednesday, also released construction output figures. Here, the news was somewhat better, with output contracting a mere 5 percent y/y, rather than the 8 percent or so that analysts had expected. The sector had contracted by 8.8 percent y/y in July. A detailed breakdown of the construction data showed a rebound in infrastructure construction, Mr Bujak said, “but in our view this is [a] temporary effect connected with

1

It’s a harbinger of more negative numbers to come, as economic slowdown hits Poland

. '1 1

But the economists that spoke with WBJ disagreed with Mr Balcerowicz. “I definitely think interest rates should be cut. One can’t approach interest rates with such a narrow-minded view that focuses only on inflation,” said Przemys∏aw Kwiecieƒ,

Leszek Balcerowicz opposes cutting interest rates at the moment

. '1

Not just about inflation

chief economist at X-Trade Brokers. Mr Kwiecieƒ added that the headline Consumer Price Index figure, which Mr Balcerowicz cited, needs to be seen in a more nuanced light. Factors which made the figure stand at 3.8 percent such as increased energy prices have “nothing to do with monetary policy, as they are regulated,” he said. Likewise, he said, increased food prices are largely a function of global economic trends, as are higher fuel prices. “What monetary policy has an effect on is discretionary spending, and that is also very weak now,” he said. Grzegorz Maliszewski, chief economist at Bank Millennium, also thinks interest rates should be lowered. “I think we should look at the situation in the real economy. Polish interest rates are among the highest in Europe,” he said. Mr Maliszewski said he expects interest rates to be cut by around “75 basis points” before the end of the Remi Adekoya year.

Se p

As the macroeconomic data released by Poland’s statistical office continues to disappoint, more economists are becoming convinced that the Monetary Policy Council (RPP) will lower the country’s reference interest rate at its next meeting, at the beginning of October. Any reduction in the rate, which currently stands at 4.75 percent, would be the first in over three years. While many economists think a rate cut would be the right move, at least one very influential former rate-setter is calling for the RPP to refrain from lowering rates. Leszek Balcerowicz, a former finance minister and National Bank of Poland head, often called the architect of Poland’s economic transformation, has spoken out against lowering interest rates. Mr

Balcerowicz, known for his hawkish views on monetary policy, spoke out last week, saying those who favor loosening rates underestimate the danger of inflation. “How can the RPP reduce interest rates when inflation is at 3.8 percent, much higher than the set target of 2.5 percent? That would be irresponsible,” Mr Balcerowicz told Puls Biznesu. “If the RPP isn’t capable of controlling the situation with inflation, then it should dissolve itself. That is a serious proposition,” he added. The former NBP head also said that if the RPP were to cut rates, it would be wrongly bowing to pressure from a set of vocal economists.

Au g

Poland’s headline interest rate is higher than in most developed economies. That might be about to change

COURTESY OF WIKIMEDIA COMMONS

To cut or not to cut?

Source: Central Statistical Office

Labor market stagnating In the second quarter of 2012, nominal labor costs in Poland rose by 3.9 percent in comparison to the same period a year earlier, Eurostat revealed last Monday. The European statistical agency said that the increase was due largely to pay rises, and not new overhead costs or taxes. However, with inflation at nearly 4 percent for that period, according to Poland’s statistical office, in real terms, the country’s labor costs have not risen. In comparison, Eurostat found that in the same period real labor costs grew by 1.2

percent in the Czech Republic, 5.1 percent in Romania and 3 percent in Bulgaria. Meanwhile, in Hungary, real labor costs decreased by 0.8 percent and in Slovakia by 0.6 percent. Poland’s Central Statistical Office released data last Tuesday that showed that corporate sector employment and wages dropped month-onmonth in August (0.1 percent and 0.4 percent respectively) and that in year-on-year terms, corporate employment remained stable, while wages rose by 2.7 percent. In the eight months to August, employment rose by just 0.3

percent over last year, while wages grew by 3.9 percent. “These data are in line with our scenario of labor market stagnation in the upcoming months,” wrote Maciej Reluga, chief economist at Bank Zachodni WBK in an e-mail. “In our view, [the] labor market data, together with CPI figures and expected by us weak growth of output in industry … should deliver sufficient arguments for most [Monetary Policy Council] members to cut interest rates at October’s meeting.” RA, AK


Ghelamco Poland has officially opened its Senator office building in Warsaw

International developers are increasingly interested in the office market in Tri-city

20

21

LOKALE IMMOBILIA

W a r s a w B u s i n e s s J o u r n a l ’s w e e k ly s u p p l e m e n t o n re a l e s t a t e , c o n s t r u c t i o n a n d d e v e l o p m e n t

The old part of Terminal A at the Chopin Airport in Warsaw has been closed due to the launch of a major refurbishment process that will result in its complete transformation and integration with the new part of the terminal by the end of 2014. The old part of the terminal was in poor technical condition and its throughput needed to be increased. ●

In this issue Penta eyes Poland . . . . . . . . . . .19 Senator opening . . . . . . . . . . . .20 Hotel Europejski renovation . .20 Magnolia Park extension . . . . .20 Property-related stocks . . . . . .20 Tri-city offices . . . . . . . . . . . . . . .21 Alchemia sports center . . . . . .21 Bayer in Gdańsk . . . . . . . . . . . . .21

Property investment

Penta Investments eying Polish property market The investment group is targeting projects valued from €100-250 million Investment group Penta Investments, which operates in Slovakia and the Czech Republic, is considering entering the Polish property market and investing in projects in Warsaw. “We are intensively monitoring the Polish market and considering potential investment projects in the real estate sector in Warsaw,” Jozef Oravkin, managing partner at the company’s Real Estate Penta division, said in a statement. Martin Danko, PR manager and spokesperson at Penta Investments, added that in Poland the company is mostly

focusing on the office sector. “We are targeting projects with an ‘enterprise value’ of from €100-250 million,” Mr Danko said. Projects that Penta Investments is interested in and currently reviewing in Poland include schemes which allow for the construction of office skyscrapers. “Compared to our presence in Prague and Bratislava, the Polish market has the biggest [growth] potential for us in real estate,” Mr Danko said. To date, Penta has completed two real estate projects and is now carrying out 12 schemes in Slovakia and the Czech Republic. By 2018, the company plans to invest €1.1 billion in property and develop buildings with a total area of some 580,000 sqm.

SHUTTERSTOCK

Work on Chopin Airport terminal

SEPTEMBER 24-30, 2012, LI 17/38

Penta Investments sees great potential in the Polish property market Earlier this month, Penta Investments acquired a 169,000-sqm plot in Prague on which it is planning a

mixed-use complex including approximately 45,000 sqm of office space and approximately 350 housing

units. The investment is valued at more than €200 million. Adam Zdrodowski


20

LOKALE IMMOBILIA – REAL ESTATE

www.wbj.pl

New Saska estate phase underway

Ghelamco opens Senator Hotel Europejski renovation to building in Warsaw launch in 2013

Warsaw Stock Exchangelisted developer Robyg has obtained a building permit for the first phase of its Young City multifamily residential project in Warsaw. Construction on the scheme is scheduled to launch later this month and finish in December next year. The new estate is located in the capital’s Bemowo district and its first phase will comprise a four-storey building with 143 apartments. ●

COURTESY OF GHELAMCO POLAND

Warsaw Stock Exchangelisted developer Dom Development has launched construction on a new phase of its Saska multifamily housing estate in Warsaw. The new building will feature from seven to eight floors and will comprise 163 apartments. Homes in the newly launched phase of the project are scheduled to be completed in the first quarter of 2014.

Robyg starts new Warsaw scheme

SEPTEMBER 24-30, 2012

The Senator building has delivered 25,000 sqm of space

The project is sitting on the city’s historic Polish Bank site Developer Ghelamco Poland has officially opened its Senator office building in Warsaw. The facility, which is located on ul. Bielaƒska in the capital’s ÂródmieÊcie district, has delivered 25,000 sqm of space. “Senator is the most unique

clude PKN Orlen, Legg Mason, Euronet and BRE Bank. Ghelamco Poland specializes in the delivery of office and logistics developments and has completed over 400,000 sqm of office and warehouse space over the last 21 years. The company is also, under its Ghelamco Residential brand, present in the Polish housing market.

investment of Ghelamco Poland and at the same time a unique place in Warsaw,” said Jeroen van der Toolen, Ghelamco’s managing director for Central and Eastern Europe. The Senator building was built on the site of the historic Polish Bank building and its architecture is modeled after that of the pre-war structure. The investment’s tenants in-

Adam Zdrodowski

% change (week)

52-week low

52-week high

% change (year)

Total shares

Market value (z∏. mln)

BUDIMEX

50.50

3.06

45.85

88.35

-28.77

25,530,098

1,289.27

CELTIC

8.41

-6.56

7.02

22.70

-57.42

34,231,466

287.89

DOMDEV

28.77

10.65

23.50

42.80

11.86

24,670,397

709.77

ECHO

4.32

7.73

3.05

4.45

16.13

420,000,000

1,814.40

ELBUDOWA

98.50

4.40

87.00

120.00

-1.50

4,747,608

467.64

ENERGOPLD

0.20

11.11

0.17

2.75

-93.06

70,972,001

14.19

ERBUD

12.42

4.46

11.33

23.20

-46.70

12,677,956

157.46

GANT

3.37

-2.32

3.37

9.85

-59.88

20,120,000

67.80

GTC

7.50

11.94

5.20

12.49

-25.74

319,372,990

2,395.30

HBPOLSKA

0.01

-66.67

0.02

1.43

-98.85

210,558,445

2.11

JWCONSTR

4.27

1.67

3.85

8.42

-40.20

54,073,280

230.89

LCCORP

1.19

29.35

0.85

1.48

20.20

447,558,311

532.59

MARVIPOL

10.00

-3.38

6.20

11.00

14.16

36,923,400

369.23

MIRBUD

1.00

-8.26

0.98

2.68

-59.18

75,000,000

75.00

MOSTALWAR

13.55

4.71

11.30

25.88

-38.41

20,000,000

271.00

MOSTALZAB

1.19

26.60

0.81

1.80

-12.50

149,130,538

177.47

ORCOGROUP

6.56

2.82

6.38

19.55

-68.75

99,992,889

655.95

PBG

4.40

10.55

3.36

92.00

-93.45

14,295,000

62.90

PLAZACNTR

2.25

12.50

1.80

2.94

-6.25

297,174,515

668.64

POLAQUA

3.40

-3.68

3.40

9.70

-66.00

27,500,100

93.50

POLIMEXMS

0.69

32.69

0.48

2.04

-50.71

521,154,076

359.60

POLNORD

12.29

4.15

10.49

19.85

2.42

23,798,439

292.48

RANKPROGR

7.70

-1.28

7.10

16.97

-24.58

37,145,050

286.02

ROBYG

1.24

8.77

1.04

1.75

11.71

257,935,500

319.84

RONSON

0.71

10.94

0.61

1.15

-29.00

272,360,000

193.38

TRAKCJA

0.73

4.29

0.65

1.87

-52.90

232,105,480

169.44

ULMA

38.80

-0.49

37.20

74.80

-34.79

5,255,632

203.92

UNIBEP

4.40

-1.79

3.60

6.61

-21.29

34,021,684

149.70

WARIMPEX

3.14

1.29

2.64

5.77

-41.31

54,000,000

169.56

ZUE

6.90

6.81

5.07

9.15

-25.00

22,000,000

151.80

Adam Zdrodowski

COURTESY OF VSF CREATIVE

Closing price on Sep 20

documents that are needed to carry out this undertaking. We are planning to launch construction in the first quarter of next year and we expect the hotel to again open its doors in the first half of 2015,” Mr Hannah added. The renovation project, which has been accepted by Warsaw’s historic-buildings preservation authorities and for which a building permit has already been granted, was designed by the Sud Architectes studio. The refurbished building will comprise approximately 100 hotel rooms, operated by Raffles Hotels & Resorts, as well as luxury boutiques and 6,500 sqm of classA office space. The portfolio of the Raffles Hotel & Resorts brand currently comprises eight luxury facilities in locations including Singapore, Dubai and Paris. Hotel Europejski, which the investors intend to make the most luxurious hospitality project in Poland, will be the brand’s second hotel in Europe.

Magnolia Park extension design presented

Property-related stocks Security

The historic Hotel Europejski building in Warsaw will undergo thorough renovation that will launch in the first quarter of next year and cost approximately €65 million. The prestigious facility is expected to reopen for business in the first half of 2015. The planned refurbishment of Hotel Europejski has become possible due to the securing of a new investor. Vera Michalski-Hoffmann, a Swiss citizen, has become a majority shareholder in the firm that owns the facility. Through a Swiss entity called Takami Holding, the investor has acquired a 66percent stake in the firm. The remaining 34 percent remains in the hands of the heirs of the families that established the hotel. Takami Holding will cover approximately one-third of the renovation cost, while the remaining two thirds will come from outside sources, Joseph Hannah, managing director of Hotel Europejski, said in a statement. “We already have all the

Construction on the 20,000-sqm project will launch at the beginning of 2013 The vsf creative studio has presented the architectural concept for the planned 20,000-sqm extension of the Magnolia Park shopping center in Wroc∏aw. Kasama Investments and Blackstone are planning to launch construction on the project at the beginning of 2013. Following the extension scheme, the size and range of the retail offer of Magnolia

Park will be increased, with a number of new brands expected to make a debut in the Wroc∏aw market by setting up shop in the mall. The food and entertainment facilities will be expanded and relocated. “A significant feature of the building will be the revised approach from ul. Legnicka, where visitors will be introduced to a new shopping expe-

rience under a sweeping roof in the double-height entrance hall,” vsf creative said in a statement. Opened in October 2007, Magnolia Park is the largest shopping and entertainment center in Lower Silesia. The mall features 74,400 sqm of leasable space and houses almost 230 stores, restaurants and points of service. Adam Zdrodowski


SEPTEMBER 24-30, 2012

LOKALE IMMOBILIA – REAL ESTATE

www.wbj.pl

21

Office

Tri-city attracting international developers The agglomeration’s office market is no longer dominated by local players

Biurowe Neptun (15,300 sqm). As of the end of Q2 2012, over 33,000 sqm of office space in Tri-city remained unoccu-

tal Park. Up to 150,000 sqm of office space could be developed within Hossa’s Garnizon.biz scheme. According to Jones Lang LaSalle data, Tri-city is the fourth-largest office market in Poland, with its current stock of approximately 370,000 sqm. Over 50 percent of the volume is located in Gdaƒsk, while Gdynia and Sopot account for 40 percent and 10 percent of the figure, respectively. Currently, approximately 80,000 sqm of office space is under construction in Tri-city, with major ongoing projects including Olivia Point & Tower (21,000 sqm), Alchemia Phase I (16,500 sqm) and Centrum

Torus’s Alchemia is one of the largest ongoing office projects in Gdaƒsk

pied, which meant a vacancy rate of 9.1 percent. “These figures confirm the strong position of tenants in Tri-city who can

choose from a selection of very attractive office projects,” Ms Reƒska said. Adam Zdrodowski

Major sports center in Alchemia project The under-construction Alchemia mixed-use project in Gdaƒsk will feature the largest sports facility in Poland located in an office building, according to the scheme’s developer, Torus. The almost 5,000-sqm sports and recreation center will be arranged in a four-floor base of Alchemia whose high-rise sections will comprise office space. The center will include a hall with a climbing wall, a fitness facility, a large gym and three swimming pools. “The sports and recreation part of

Alchemia will be an integral part of the whole building. We hope that it will be actively used by both the employees of our tenants and the inhabitants of Tri-city,” Monika Brzozowska, a commercialization expert at Torus, said in a statement. The first phase of Alchemia will comprise two office buildings, featuring six and eight floors above the shared base. They will offer a total of almost 22,000 sqm of leasable space that is scheduled to be turned over to tenants on October 1, 2013.●

Bayer at Olivia Business Centre in Gdaƒsk

COURTESY OF TORUS

Office supply in the Tri-city agglomeration has nearly doubled since 2005 and is set to see further growth as international and large Polish developers are increasingly discovering the largest office market in northern Poland. “Until recently, the market was dominated by local developers. This has now started to change with international developers and developers with large-scale operations across Poland planning or undertaking office projects in the area,”

Magdalena Reƒska, head of the office agency at Jones Lang LaSalle in Gdaƒsk, said in a statement. Companies such as Capital Park, Echo Investment, Hines and Multi Development are now all either building or planning office projects in Tri-city, according to a recent study by Jones Lang LaSalle, prepared in cooperation with Invest in Pomerania, Hays Poland and Reas. Planned investments include a 28,500-sqm office park by Multi Development, a 21,000-sqm office building called Tryton by Echo Investment and an office building called Neptun House by Capi-

The Olivia Business Centre office project in the Baltic Sea coast city of Gdaƒsk will house Bayer’s new finance and accounting center. Following a lease transaction brokered by Jones Lang LaSalle, the company will occupy two floors in the project, which is currently under construction. Bayer will eventually occupy around 2,500 sqm in the Olivia Tower part of the complex where it is expected to move by the end of 2014. Before that, the first employees of the new center will temporarily occupy 400 sqm of office space in the alreadycompleted Olivia Gate building.

“The availability of modern office space, as well as access to qualified graduates and professionals, were some of the main reasons for locating our center in Tri-city,” Remigiusz Wojciechowski, head of Bayer’s Service Center Gdaƒsk, said in a statement. “It is a pleasure to cooperate with companies entering the Tri-city market. It is with pride that we observe how office space in this market finds tenants among some of the most renowned global companies,” stated Magdalena Reƒska, head of the office agency of Jones Lang LaSalle in Gdaƒsk.●


22

THE LIST

www.wbj.pl

SEPTEMBER 24-30, 2012

Construction & Real Estate

Warehouse Space in Poland Ranked by existing rentable space

www.bookoflists.pl

Amenities and equipment Rank

Warehouse name Address Web page

Existing rentable space (sqm)

Space rented

Included in price

Charged seperately

24-hour security

Year completed

Maximum storage height (m)

Selected clients

Contact person

Owner

234,672

93%

ESFR sprinkler system; parking spaces; corporate logo on the building; automatic door and unloading platforms; maneuverable areas

24h security; facility management; utilities; ISDN

2006-2009

10-11

Aldi; ArchiDoc; Danone; FM Polska; Hellmann Worldwide Logistics; Moto-Profil; Kuehne & Nagel; Raben

Micha∏ Czarnecki: mczarnecki@prologis.com, 601-447-966

Prologis: info-pl@prologis.com, 22 218-3600

Anna Leowska: anna.leowska@segro.com, 600-010-035; Aleksandra Kiciƒska: aleksandra.kicinska@segro.com, 692-053-181

Segro Poland: Bo˝ena Krawczyk, warsaw@segro.com, 22 338-6617

Prologis Park Chorzów(1) 1 ul. Niedêwiedziniec 10, Chorzów Batory

www.prologiscee.com

Tulipan Park Stryków ul. Warszawska - Smolice 1, 2 95-010 Stryków www.segro.pl/parki_segro/strykow

183,000

97.63%

WND

WND

WND

10

Corning; Azymut; Sonoco; Komfort; Complex; CEI; SWM; Hellmann

176,522

WND

WND

WND

1998-2010

10

Europapier; Delphi; TP; Nagel; Tajfun; Wilshire agata.czerwinska@caimmo.pl, Holding; IBM; Euromark

Europolis Park B∏onie 3 Pass, 05-870 B∏onie

Agata Czerwiƒska:

Panattoni Park Poznaƒ I 4 ul. Magazynowa 3; 4; 5A, 62 - 023 Gàdki www.panattoni.pl

Panattoni Park Mys∏owice 5 ul. Kosztowska 21, Mys∏owice www.panattoni.pl

Prologis Park Wroc∏aw(1) 6 ul. Magazynowa 1-8, Kobierzyce, Bielany Wroc∏awskie www.prologiscee.com

98%

Class-A buildings; column grid 12m x 25m; the floor load capacity - 5T/m2; ESFR sprinkler system; gas heating; light intensity; skylights and smoke flaps in accordance with Polish law and the requirements of the customer; door and unloading ramp with seals

WND

2008-2010

10

H&M; Piotr i Pawe∏; Gefco; Neuca; Dachser; NAVO; OST Sped; Hendi

Sylwia Wàsowska: swasowska@panattoni.com, 691-945-012

Panattoni Europe: plinfo@panattoni.com, 22 540-7171

97%

Class-A buildings; column grid 12m x 25m; the floor load capacity - 5T/m2; ESFR sprinkler system; gas heating; light intensity; skylights and smoke flaps in accordance with Polish law and the requirements of the customer; door and unloading ramp with seals

WND

2008-2009

10

PartnerTech; Rohlig; Coca-Cola HBC; Intermarche; Magneti Marelli; DPD; Manuli Hydraulics; CAT

Patrycja Polaƒska: ppolanska@panattoni.com, 32 609-0870

Panattoni Europe: plinfo@panattoni.com, 22 540-7171

168,007

88%

ESFR sprinkler system; parking spaces; corporate logo on the building; automatic door and unloading platforms; maneuverable areas

24h security; facility management; utilities; ISDN

2005-2007

10

Black Red White; Carlsberg Polska; DS Smith Polska; Geodis Calberson Polska; Healthy Food Production; Iron Mountain Polska; JAS-FBG; Toyota Tsusho Polska

Ewa Zawadzka: ezawadzka@prologis.com, 692-436-714

Prologis: info-pl@prologis.com, 22 218-3600

165,000

96%

Depending on the customer’s wishes

Depending on the customer’s wishes

2000-2010

10.5

WND

Ma∏gorzata Âlusarczyk: m.slusarczyk@mlp.pl, 600-026-180

MLP Pruszków I: info@mlp.pl, 22 738-3010

159,424

77%

ESFR sprinkler system; parking spaces; corporate logo on the building; automatic door and unloading platforms; maneuverable areas

24h security; facility management; utilities; ISDN

2000-2005

10

DHL; International Automotive Comp; NTA; Schenker; FIEGE; Viva Manufacturing

Emilia Szyszka: eszyszka@prologis.com, 664-194-607

Prologis: info-pl@prologis.com, 22 218-3600

24h security; facility management; utilities; ISDN

1999-2008

10

Bertelsmann; Interchem; Iron Mountain; Mercedes-Benz; Papyrus; Procan; Raben; Rhenus

Emilia Szyszka: eszyszka@prologis.com, 664-194-607

Prologis: info-pl@prologis.com, 22 218-3600

Micha∏ Czarnecki: mczarnecki@prologis.com, 601-447-966

Prologis: info-pl@prologis.com, 22 218-3600

Joanna Janiszewska: 668-478-136

Segro Poland: Bo˝ena Krawczyk, warsaw@segro.com, 22 338-6617

171,300

170,860

MLP Pruszków I 7 ul. 3-go Maja 8, 05-800 Pruszków

www.mlp.pl

Prologis Park Teresin(1) 8 Al. 20-Lecia 23A-E, 96-515 Teresin

www.prologiscee.com

Prologis Park B∏onie(1) 9 Kopytów 44A, 05-870 B∏onie www.prologiscee.com

159,146

75%

ESFR sprinkler system; parking spaces; corporate logo on the building; automatic door and unloading platforms; maneuverable areas

Prologis Park Dàbrowa(1) 10 ul. Roêdziejskiego 12, 41-303 Dàbrowa Górnicza www.prologiscee.com

146,017

97%

ESFR sprinkler system; parking spaces; corporate logo on the building; automatic door and unloading platforms; maneuverable areas

24h security; facility management; utilities; ISDN

2004-2007

10

Abra; ANL; DHL; Euro-Pegaz Logistyka; Fiege; Magna Automotive; Rhenus Contract Logistic; 7R Solutions

142,000

WND

WND

WND

2008-2011

10

Decathlon; General Motors; Kaufland; Plastic Omnium; Schenker; Stanley Black & Decker joanna.janiszewska@segro.com,

11

Tulipan Park Gliwice Al. Jana Nowaka Jezioraƒskiego 39, 44-102 Gliwice www.segro.pl/parki_segro/gliwice

132,342

100%

Class-A buildings; column grid 12m x 25m; floor load capacity - 5T/m2; ESFR sprinkler system; gas heating; light intensity; skylights and smoke flaps in accordance with Polish law and the requirements of the customer; door and unloading ramp with seals

130,025

85%

ESFR sprinkler system; parking spaces; corporate logo on the building; automatic door and unloading platforms; maneuverable areas

Panattoni Park ¸ódê East 12 ul. Zak∏adowa 97/97B-99, 92-402 ¸ódê

www.panattoni.pl

Prologis Park Wroc∏aw III(1) 13 ul. Graniczna 8A-8E, Wroc∏aw

CA Immo

22 540-6540

www.caimmo.com

www.prologiscee.com

WND

2008-2010

10

TVAB; Compal Electronics; RR Donnelley; Lekkerland; Schenker; DSV; Flextronics; Wincanton

Maciej Krawiecki: mkrawiecki@panattoni.com, 693-600-865

Panattoni Europe: plinfo@panattoni.com, 22 540-7171

24h security; facility management; utilities; ISDN

2005-2008

10

ABB; Asplex; Deichmann Logistik Polska; DHL; Inter Cars; Selena; Sonoco Poland; Tradis

Aleksandra Cods: acods@prologis.com, 602-552-378

Prologis: info-pl@prologis.com, 22 218-3600

Anna Leowska: anna.leowska@segro.com, 600010-035; Aleksandra Kiciƒska: aleksandra.kicinska@segro.com, 692-053-181

Segro Poland: Bo˝ena Krawczyk, warsaw@segro.com, 22 338-6617

Marcin Wronecki: mwronecki@prologis.com, 606-412-932

Prologis: info-pl@prologis.com, 22 218-3600

Tulipan Park Poznaƒ 14 ul. Ks. Wawrzyniaka 2, 62-052 Komorniki www.segro.pl/parki_segro/poznan/

126,000

96.14%

WND

WND

2008

10

Eurocash; Arjo Huntleigh; ˚abka; Inter Cars; CNOS Garden; DPD; ET Euroterminal; KDWT

Prologis Park Poznaƒ II(1) 15 ul. Za Motelem 2A-E, 62-080 Tarnowo Podgórne www.prologiscee.com

120,783

99%

ESFR sprinkler system; parking spaces; corporate logo on the building; automatic door and unloading platforms; maneuverable areas

24h security; facility management; utilities; ISDN

2005-2007

10

Adam’s; FlexLink Engineering; Green Integrated Logistics; IBP Contex Limited; Igepa Polska; ITM; Philip Morris Polska; Samsung Electronics Polska

Notes: WND = Would Not Disclose. Research for The List was conducted To the best of WBJ ’s knowledge, the information is accurate as of press time. While every effort is made to ensure accuracy and thoroughness, omissions and typographical errors may occur. Corin September 2012. Companies not responding to our survey are not listed. rections or additions to The List should be sent, on official letterhead, to Warsaw Business Journal, attn. Monika Brysiak, ul. Elblàska 15/17, 01-747 Warsaw, via fax to (+48) 22 639-8569, or via eFootnotes: (1) Data on space rented (%) and selected clients is from 30.06.2012 mail to wbjbol@wbj.pl. Copyright 2011, Valkea Media SA. The List may not be reprinted or reproduced in whole or in part without prior written permission of the publisher. Reprints are available.



24

MARKETS

www.wbj.pl

SEPTEMBER 24-30, 2012

Stocks report

world stock indices DJIA

NASDAQ

13,596.936 (Sep 20 close)

S&P500

3,175.96 (Sep 20 close)

0.42% (for the week)

FTSE100

1,460.26 (Sep 20 close)

0.64% (for the week)

DAX

5,854.6 (Sep 20 close)

0.02% (for the week)

0.60% (for the week)

Stocks cool off

NIKKEI225 7,389.49 (Sep 20 close)

9,086.98 (Sep 20 close)

1.08% (for the week)

1.02% (for the week)

CHANGE: 9.68%

CHANGE: 19.91%

CHANGE: 14.35%

CHANGE: 2.71%

CHANGE: 21.63%

CHANGE: 6.15%

(year to Sep 20)

(year to Sep 20)

(year to Sep 20)

(year to Sep 20)

(year to Sep 20)

(year to Sep 20)

52-week high: 13,539.86

52-week high: 3,195.67

52-week high: 1,460.26

52-week high: 5,989.10

52-week high: 7,389.49

52-week high: 10,255.20

52-week low: 10,404.50

52-week low: 2,298.89

52-week low: 1,074.77

52-week low: 4,868.60

52-week low: 4,965.80

52-week low: 8,560.11

Andrew Nawrocki WBJ market analyst With many equity markets surging to five-year-high gains just two weeks ago, following the US Federal Reserve’s decision to buy mortgage bonds indefinitely, stocks inevitably took a dip last week. Monday started off as expected, with investors cashing in on the previous weeks’ gains. Unsurprisingly, stocks on the WIG20 took the biggest hit, after the blue-chip index gained nearly 3 percent the previous Friday. Only smaller stocks on the sWIG80 managed to post impressive gains, with the index posting a 0.40 percent rise, while the WIG20 shed half a percent overall. Tuesday saw little action, with stocks trading sideways for most of the day. Once again it was the sWIG80 which managed to post a 0.58 percent gain, while both the

Major indices WIG

43,737.02 (September 20 close)

WIG20

2,387.45 (September 20 close)

20.09

19.09

18.09

17.09

14.09

13.09

12.09

11.09

10.09

07.09

06.09

05.09

04.09

20.09

19.09

18.09

17.09

14.09

13.09

12.09

11.09

10.09

07.09

2,200

06.09

40,000

05.09

2,260 04.09

41,000

03.09

2,320

31.08

42,000

30.08

2,380

29.08

2,440

43,000

28.08

44,000

27.08

2,500

24.08

45,000

03.09

52-week low: 2,035.80

31.08

Change year to September 20: 8.81%

30.08

52-week low: 36,549.47

29.08

52-week high: 2,414.62

Change year to September 20: 14.14%

28.08

Change for the week: 1.44%

27.08

52-week high: 44,173.50

24.08

Change for the week: 1.60%

Top 5 HERKULES ELKOP WESTAISIC FON POLIMEXMS

Closing 1.10 0.28 0.76 0.16 0.69

% change (week) 52-week high 340.00 1.23 47.37 0.42 38.18 8.65 33.33 0.42 32.69 2.09

52-week low 0.16 0.17 0.42 0.11 0.46

Top 5 POLIMEXMS LOTOS GTC PBG GETIN

Closing 0.69 31.55 7.50 4.40 1.79

% change (week) 32.69 12.68 11.94 10.55 8.48

52-week high 2.09 32.00 12.75 94.65 9.03

52-week low 0.46 21.30 5.13 3.25 1.43

Bottom 5 HBPOLSKA ABMSOLID IFCAPITAL REMAK ALTERCO

Closing 0.01 0.12 0.61 14.20 1.55

% change (week) -66.67 -40.00 -36.46 -25.26 -23.65

52-week low 0.01 0.11 0.45 14.20 1.35

Bottom 5 CYFRPOLSAT TPSA PKOBP CEZ PZU

Closing 14.24 16.57 36.84 124.00 360.00

% change (week) -1.79 -1.60 -0.94 -0.40 0.14

52-week high 15.85 18.56 38.50 141.50 372.90

52-week low 12.25 15.18 27.95 111.90 283.10

52-week high 1.47 4.75 14.97 44.00 47.98

Currency report

The z∏oty retreats

Other indices sWIG80

9,672.08 (September 20 close)

NewConnect

34.83 (September 20 close)

WIG-Banki

6,398.94 (September 20 close)

SOURCE: WSE

20.09

19.09

18.09

17.09

14.09

13.09

12.09

11.09

10.09

07.09

06.09

05.09

04.09

20.09

19.09

18.09

17.09

14.09

13.09

12.09

11.09

10.09

07.09

5,900

06.09

33.0

05.09

6,020 04.09

33.6

03.09

6,140

31.08

34.2

30.08

6,260

29.08

34.8

28.08

6,380

27.08

35.4

24.08

6,500

03.09

52-week low: 4,944.19

31.08

Change year to September 20: 15.44%

30.08

52-week low: 33.69

29.08

52-week high: 6,398.94

Change year to September 20: -16.05%

28.08

Change for the week: 0.97%

27.08

52-week high: 43.83

24.08

Change for the week: 0.81%

36.0

Adam Narczewski X-Trade Brokers DM SA

20.09

19.09

18.09

17.09

14.09

13.09

12.09

11.09

52-week low: 8,218.71

10.09

05.09

04.09

52-week high: 10,536.29

03.09

31.08

20.09

19.09

18.09

17.09

14.09

13.09

12.09

11.09

10.09

07.09

9,200

06.09

2,200

05.09

9,300 04.09

2,240

03.09

9,400

31.08

9,500

2,280

30.08

2,320

29.08

9,600

28.08

2,360

27.08

9,700

24.08

2,400

30.08

Change year to September 20: 12.41%

29.08

52-week low: 2,076.52

28.08

Change year to September 20: 5.60%

27.08

Change for the week: 2.67%

24.08

52-week high: 2,561.94

07.09

2,312.81 (September 20 close)

06.09

mWIG40 Change for the week: 1.43%

WIG and WIG20 closed flat. Poor data concerning the Polish industrial sector helped send Polish shares falling on Wednesday, though shares rebounded towards the end of the day after strong housing data was released in the US. Shares in Citi Handlowy did particularly well, gaining over 3 percent, with both the WIG20 and WIG closing exactly 0.47 percent higher. Stocks dipped on Thursday, after data showed contractions in manufacturing in both China and the euro zone. Indices throughout Europe were littered with red tickers, though it was the WIG20 which ended the day with the largest decline, shedding 1.2 percent. On Friday, the WIG lost 0.08 percent while the WIG20 fell 0.30 percent. ●

The z∏oty gave up all the gains from the previous week as worse macroeconomic data in Poland and worldwide confirmed a slowing economy. Despite the fact that another major central bank decided to add stimulus to the economy (the Bank of Japan will “print” an additional 10 trillion yen), the excitement is gone and now investors are realizing that economies are still struggling. The EUR/USD, after reaching a four-month high the previous week, was unable to continue the rally and reached $1.32. After traders began closing those profitable long positions, the EUR/USD declined to $1.30 throughout the week with a low of $1.2920. This week though, we can expect the euro to regain ground and trade at levels above $1.30

against the dollar. Macroeconomic data from the local market were a negative surprise for investors. Industrial production increased only by 0.5 percent year-on-year in August while core CPI inflation dropped to 2.1 percent from 2.3 percent. These are clear signals for Poland’s rate-setting Monetary Policy Council (RPP) to strongly consider an interestrate cut, which is now likely to happen before the end of the year. RPP members also suggested such a move in their statements. As a result of this news the EUR/PLN climbed to z∏.4.13, while the USD/PLN increased from z∏.3.09 to z∏.3.18. But it was a hard week for Swiss franc credit holders, as the CHF/PLN rate increased again above the z∏.3.40 level. ●

currency rates 4.0069

4.0083

4.1056

18.09

19.09

20.09

21.09

3.9814 17.09

SOURCE: NBP

4.0037

3

14.09

0.1025 21.09

0.1019

4

4.0533

PLN-100JPY

5

20.09

0.1018

0.1021 19.09

18.09

17.09

14.09

0.1009

3.4126 21.09

20.09

19.09

0.10

0.1019

PLN-RUB

0.11

3.4440

3.4075

3.4012 18.09

17.09

3.3379 14.09

5.2018

5.1678 21.09

3.0

3.3628

PLN-CHF

3.5

20.09

5.1370 19.09

5.1166 18.09

17.09

5.0421 14.09

3.2092

3.1712 21.09

5.0

5.0637

PLN-GBP

5.5

20.09

3.1631 19.09

3.1509 18.09

17.09

3.1131 14.09

4.1635

4.1340 21.09

3.0

3.1207

PLN-USD

3.5

20.09

4.1217 19.09

4.1217 18.09

17.09

4.0584 14.09

4.0

4.0887

PLN-EUR

4.5


SPORTS

SEPTEMBER 24-30, 2012

Soccer

www.wbj.pl

25

Cricket

Poles start Champions Polish team wins League campaigns international

cricket tournament

Robert Lewandowski (far left) continued his goal-scoring form

Robert Lewandowski starred in Dortmund’s victory over Ajax Poland’s top soccer stars began their Champions League campaigns with their respective European clubs last week. In total seven Polish players have a chance to be involved in this year’s competition. These include the Borussia Dortmund trio of Robert Lewandoski, ¸ukasz Piszcek and Jakub B∏aszczykowski, Arsenal goalkeepers Wojciech Szcz´sny and ¸ukasz Fabiaƒski, Celtic keeper ¸ukasz

Za∏uska, and Anderlecht defender Marcin Wasilewski. In the first round of matches it was last season’s top Bundesliga player – Robert Lewandoski – who grabbed the headlines. The 22-year-old Warsaw-born striker scored 30 goals last season for the German champions and it looks like he is set to carry on where he left off, following his deadly finish in Borussia’s 1-0 victory over Dutch champions Ajax. Mr Lewandowski’s deciding goal came after he turned in the penalty area before firing a shot beyond Ajax goalkeeper, Ken-

neth Vermeer, with just three minutes left on the clock. Elsewhere it was a bad week for the three Polish goalkeepers, as none of them made it on to the pitch. Both Mr Szcz´sny and Mr Fabiaƒski were injured for Arsenal’s 2-1 away win over Montpellier, while Mr Za∏uska was an unused substitute in Celtic’s scoreless draw with Benfica. But for Anderlecht’s Wasilewski it was a good night at the office. He turned out to be the star man as his side earned a 0-0 draw against AC DI Milan at the San Siro.

A Polish cricket team made up of players from Bangladesh, India, New Zealand, Poland and Sri Lanka won the Eastern European Twenty 20 tournament in the Bulgarian capital Sofia earlier this month. The team, which contains players who represent either Warsaw Cricket Club or ¸ódê Cricket Club in the domestic game, defeated Romania in the final. The Romanian side was bowled out 43 runs short of Poland’s total of 150 for 9 in 20 overs. The tournament, which was organized by the Cricket Board of Wales, saw teams from Bulgaria, Hungary, Macedonia, Romania, Russia and Wales, as well as the two finalists, competing to claim the title of Eastern European

champions. On the way to the final the Polish side beat Bulgaria, Russia and Macedonia in the group stages before brushing aside the 2010 winners Hungary in the semifinals. Poland also picked up numerous team and individual awards at the end of the tournament, player manager Nick Sinha, who hails from Bombay, told WBJ. Among those who won awards, were Asif Iqbal, who was ranked as the tournament’s most valuable player, Tarun Daluja who was picked as best bowler, and Vineet Sinha who

claimed the fastest bowler award, averaging a speed of 130 kph for each delivery. Speaking about the game in Poland, the team’s manager said “the standard is really quite high now as this tournament is supported by [cricket’s governing body] the ICC, which means it has to be at a certain level.” Looking to the future, Mr Sinha said he hopes more players will join Warsaw Cricket Club, adding that anyone interested should get in touch via the team’s website, warsawcricketclub.com.

COURTESY OF FACEBOOK/WARSAWCRICKETCLUB

SHUTTERSTOCK

Poland defeated Romania in the final of the Eastern European Twenty 20 tournament

Poland’s victorious cricket team

David Ingham


26

LIFESTYLE

www.wbj.pl

Movies

SEPTEMBER 24-30, 2012

Festival

COURTESY OF ZAIR.PL

“Imagine” 28th Warsaw Film Festival October 12-21 Kinoteka and Multikino Warsaw Movie goers are once again in for a treat this autumn with the return of the renowned Warsaw Film Festival (WFF). Since starting out as a smallscale student event, WFF has developed into a globally renowned movie festival, becoming one of only 14 such events endorsed by the International Federation of Film Producers Associations. The festival showcases the best of Polish, European and international cinema, with a mission to increase international awareness of Polish film and culture. “We still

have a lot of catching up to do culturally speaking,” said Stefan Laudyn, director of the WFF. “During the wars Poland was completely cut off from culture. Now it is our chance to catch up with the rest of the world and that is something which is speeding right ahead.” This year’s event, which promises to be the best yet, will be opened with a screening of Andrzej Jakimowski’s new film “Imagine.” The film, which stars Alexandra Maria Lara (“Downfall” by Oliver Hirschbiegel, “Control” by Anton Corbijn) and Edward Hogg (“White Lightnin’ ” by Dominic Murphy,) tells the

story of Ian, a new instructor at a well-known Lisbon clinic for the visually impaired. “I wrote ‘Imagine’ after several months’ research into spatial orientation techniques used by the blind,” said Mr Jakimowski. “I find some of their methods poetic and absolutely cinematic at the same time,” he added. All movies will be divided into different competition categories, such as best screenplay, director, and documentary. The winners will be chosen by a special jury.

Robert Cray (right) Rawa Blues October 6, 11 am Spodek Hall, Katowice The world’s biggest indoor blues festival returns to Katowice for the 32nd time this October, and this year’s lineup ensures that music fans can expect some great guitar playing. Just 20 Polish bands and 200 fans went to the first ever festival back in 1981, but since

David Ingham

For more information and full listings log on to wff.pl

Concert

COURTESY OF FACEBOOK/ROBERTCRAY

Technicolored spectacular

Colours of Hope Colours of Hope October 4 Sala Kongresowa Palace of Culture and Science Plac Defilad 1 Warsaw This show combines theater, dance, art photography, computer graphics and music from genres including rock, pop, classical and folk, to provide theatergoers with a thoroughly

entertaining spectacle. The performance tells the story of a man who feels lost and is caught up in the problems of everyday life. It details his fears and concerns, before going on to illustrate how we can overcome our weaknesses and find meaning in our lives. As the name suggests, colorful costumes and scenery are a major part of the show, which sees musicians and dancers combine to show audiences

that you should never give up and to provide an insight in to how to live a happier life. Among the performers set to take the stage is Polish rock singer Piotr Cugowski, a member of the group Brothers. Mr Cugowski has previously collaborated with the late John Lord of Deep Purple, among numerous others. David Ingham

For more information log on to kolorynadziei.pl

COURTESY OF FACEBOOK/ROBERTCRAY

Capital cinema Singing the blues

then the event has grown in to a major international success, with artists, from across the globe descending on the city every year. This year’s standout performers include five-time Grammy winners the Robert Cray Band, who will be performing classic hits as well songs from the new album “Nothin But Love.” Led by front man Robert Cray, the group has performed alongside legendary blues player

Eric Clapton and singer Tina Turner, among others, during its 35-year career. Other artists set to grace the stages include blues-rock band Eric Sardinas & Big Motor and blues-swing-jazz group Davina and the Vagabonds, who are fronted by classically trained pianist Davina Sowers. David Ingham

For more information log on to rawblues.com


LAST WORD

SEPTEMBER 24-30, 2012

www.wbj.pl

27

Tech Eye

Kindle Fire HD Much like a fat man galumphing desperately after a runaway McNugget, Techeye has been struggling to catch up recently. And sweating profusely. September is always a busy month, you see, as gadget makers reveal new toys and build hype to drive crucial fourth-quarter sales. Indeed, there has been so much new tech this month that we haven’t been able to cover all the major reveals, leaving us feeling more inadequate than a eunuch tasked with repopulating a post-apocalyptic world full of libidinous women.

Anyway, this week’s column is all about rectifying that situation, at least in part, so let’s start with the Kindle Fire HD from Amazon. You may recall that the original Kindle Fire, a seven-inch tablet introduced last year, sold respectably well, making it one of the few products to dent the iPad’s market dominance. For its part, the Kindle Fire HD is being released in both 7-inch and 8.9inch variants. Amazon is pitting the latter model almost directly against the 9.7-inch iPad, although nobody

would call it an even match – more like David and iGoliath. At $499, the Kindle Fire HD has 32GB of storage and a dual-core 1.5GHz processor (up from 1GHz in the original Fire) powering an HD display. The device runs a heavily modified version of Android 4.0 and boasts wireless and 4G LTE connectivity. The comparable model of the iPad retails for $729, albeit with a better display and more power. Long story short, consumers looking for high-end performance (and ready to pay for it) will stick with the iPad; price-conscious consumers may find Amazon’s product more attractive. Meanwhile, at $199, the seven-inch Fire HD – with 16GB of storage and a 1.2GHz processor – is squared off against Google’s similarly sized Nexus 7. The word on the street is that Google’s is the better piece of hardware, but Amazon has the edge in terms of service. Both Fire HD models will ship in November. These weren’t the only new toys unveiled by Amazon this month, either – there’s also the Kindle Paperwhite, the latest iteration of its industry-leading e-reader series. This generation sees Amazon playing catch up

too, but rather than covering stale news or chasing runaway, processed foodstuffs, it’s trying to regain ground lost to a rival product. To wit, that’s the Nook Simple Touch from Barnes & Noble. Despite sounding like a dodgy pop song from 1984, the Simple Touch successfully combines front lighting with a touch screen. And, much to Amazon’s chagrin, consumers bought it. The Paperwhite introduces front-lighting technology to a Kindle product, and it’s obvious that Amazon has put a lot of work into it. The glow is certainly bright enough to read by, but it’s not hard on the eyes. Moreover, Amazon claims that you’ll still get around eight weeks of battery time on the device, even with the front lighting on all the time (keeping the wireless or 3G active will tax the battery more though). Other updates include a 212-pixel per inch display (up 62 percent on the last-gen Kindle), improved contrast and a slimmer design that, for better or worse, does away with physical butCOURTESY OF AMAZON

COURTESY OF AMAZON

Playing catch up, sweatily

Kindle Paperwhite tons on the device’s face. The software has also gotten a bit of polish, adding features like “Time to Read,” which keeps track of reading speed and estimates how long it will take you to finish a chapter or book. The Paperwhite will be available at the start of October. It runs $119 for the Wi-Fi version and $179 for the 3G version; add $20 to each price if you don’t want “special deals” ads. ●

Ever ruined a perfectly good post-apocalyptic repopulation fantasy by adding a eunuch? Let us know: techeye.wbj@gmail.com

Museums, galleries and venues in Warsaw Centre for Contemporary Art at Ujazdowski Castle ul. Jazdów 2 www.csw.art.pl Czarna Gallery ul. Marsza∏kowska 4 www.czarnagaleria.art.pl

Katarzyna Napiórkowska Art Gallery ul. Âwi´tokrzyska 32, ul. Krakowskie PrzedmieÊcie 42/44 and Old Town Square 19/21 www.napiorkowska.pl

Galeria 022, DAP, Lufcik Królikarnia National ul. Mazowiecka 11a Gallery www.owzpap.pl ul. Pu∏awska 113a www.krolikarnia.mnw.art. pl Galeria 65 ul. Bema 65 www.galeria65.com Le Guern Gallery ul. Widok 8, www.leguern.pl Galeria Appendix 2 ul. Bia∏ostocka 9 Museum of www.appendix2.com Independence Aleja SolidarnoÊci 62 Galeria Asymetria www.muzeumniepodleglo ul. Nowogrodzka 18a www.asymetria.eu sci.art.pl Galeria Foksal ul. Foksal 1-4 www.galeriafoksal.pl Galeria Milano Rondo Waszyngtona 2A www.milano.arts.pl Galeria Schody ul. Nowy Âwiat 39 www.galeriaschody.pl Galeria XX1 Al. Jana Paw∏a II 36 www.galeriaxx1.pl Galeria Zoya ul. Kopernika 32 m.8 www.zoya.art.pl Green Gallery ul. Krzywe Ko∏o 2/4 www.greengallery.pl

Simonis Gallery ul. Burakowska 9 www.simonisgallery.com State Archaeological Museum in Warsaw ul. D∏uga 52 www.pma.pl State Ethnographic Museum ul. Kredytowa 1 www.ethnomuseum.we bsite.pl Historical Museum of Warsaw Old Town Square 28-42 www.mhw.pl History Meeting House of Warsaw ul. Karowa 20 www.dsh.waw.pl

National Museum in Warsaw Al. Jerozolimskie 3 www.mnw.art.pl

Warsaw Philharmonic ul. Jasna 5 www.filharmonia.pl

Polish National Opera at Teatr Wielki Pl. Teatralny 1 www.teatrwielki.pl

Warsaw Rising Museum ul. Grzybowska 79 www.1944.pl

Pracownia Galeria Wilanów Palace ul. Emilii Plater 14 Museum and Wilanów www.pracowniagaleria.pl Poster Museum ul. St Kostki Potockiego Rempex Art and 10/16 Auction House www.milanow-palac.pl ul. Karowa 31 www.postermuseum.pl www.rempex.com.pl Royal Castle Pl. Zamkowy 4 www.zamekkrolewski.com.pl

Zachęta National Art Gallery Pl. Ma∏achowskiego 3 www.zacheta.art.pl



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